Lithuanian president's aide urges step to raise people's income amid interest rate hikes

  • 2023-09-19
  • BNS/TBT Staff

VILNIUS – Policymakers should look for ways to help people facing additional expenses as a result of the European Central Bank's continued interest rate hikes, Irena Segaloviciene, President Gitanas Nauseda's chief economic and social policy advisor, said on Tuesday.

"If interest rate hikes continue, it is obvious that politicians will have to look for additional solutions to help people in this situation within the framework of their responsibilities," she told the Ziniu Radijas radio station. 

While raising income is the best way to help people, the parliament and the government may also propose other solutions, according to the advisor. 

"We currently see an increase in income as one of the key things, because it is quite universal and it can help people, but without a doubt, both members of the Seimas and the government can come up with all sorts of solutions and the immediate future will show whether they are needed," she said. 

The ECB last Thursday raised its key interest rates by 25 basis points for the tenth consecutive time, saying that "inflation continues to decline but is still expected to remain too high for too long". 

Gediminas Simkus, the Lithuanian central bank's governor, said on Friday that while the decision might be painful for some people, it is an appropriate measure to rein in inflation.   

He added that he expected the ECB's 10th straight interest rate hike to be the last one in the current cycle.