Member of the European Central Bank (ECB) Governing Council Gediminas Simkus said on Monday that he does not see the need for interest rate cuts bigger than 25 basis points (bps). The ECB delivered 25-point cuts both in September and October. While he said he cannot predict the outcome of the December meeting, he said monetary policy will "clearly" move to a less restrictive stance.
Simkus repeated assertions made by ECB President Christine Lagarde, saying that disinflation is "on a stable track" even if the services inflation remains high. He warned that risks to economic growth in the Eurozone are skewed to the downside and added the ECB might push rates lower than the "natural level" if disinflation gets more entrenched.