2/3, 9:48 AM (Source: TeleTrader)
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ECB's Simkus: Rate hike in March may not be last

European Central Bank Governing Council member Gediminas Simkus (pictured) said on Friday that the interest rate hike in March may not turn out to be the last.

Speaking to local reporters after an event in Vilnius, the Bank of Lithuania Board chairman all but dismissed the possibility of a 0.75 percentage point rate hike, with 25 or 50 basis points as the main options at the ECB's next monetary policy meeting on March 16 in Frankfurt.

It is "certainly possible to expect another increase" at the meeting that will follow in early May, Simkus added but noted that he believes the ECB is "on the right track" when it comes to fighting inflation and that the central bank is "moving towards the final stop" in the rate-hiking process. Nevertheless, he revealed that rate cuts are "very unlikely" in 2023.

Baha Breaking News (BBN) / MS