ECB likely to start cutting interest rates in June – Lithuania's c.banker

VILNIUS – As the European Central Bank key interest rates on hold on Thursday, the board chairman of the central Bank of Lithuania says that the ECB is likely to start cutting them in June.

"There's no recession, despite constant fears and apprehensions. We can see that inflationary processes seem to be under control and there are all the preconditions to think about a monetary policy environment that will be less restrictive," Gediminas Simkus told reporters on Friday.

"Given the slowdown in wages, the return of inflation to the target level in the medium term, the impact of monetary policy on aggregate demand and price pressures, in my view, June is the month when an interest rate cut is very likely," he added.

The ECB began an unprecedented rate hike campaign in July 2022 and raised interest rates ten consecutive times to reduce inflation.