26-05-2025
ECB Faces Greater Risk Inflation Will Undershoot 2%, Simkus Says
There's a growing danger that inflation will fall short of the European Central Bank's 2% target, according to Governing Council member Gediminas Simkus.
The balance of risks for consumer prices is to the downside due to trade friction with the US and a stronger euro, the Lithuanian official said Monday. Borrowing costs are currently at the upper end of the range for the neutral rate, which neither stimulates nor curbs economic activity, he said.
