Finance
ECB's Simkus sees equal chance of rate hike or cut
Published by Global Banking & Finance Review®
Posted on February 9, 2026
1 min readLast updated: February 9, 2026
Quick Summary
ECB's Gediminas Simkus states a 50/50 chance for interest rate hikes or cuts, citing economic and geopolitical uncertainties.
ECB's Simkus sees equal chance of rate hike or cut
ECB's Interest Rate Outlook
VILNIUS, Feb 9 (Reuters) - The European Central Bank is equally likely to raise or cut interest rates but it is hard to know when any such move will take place given the prevailing uncertainty about trade and geopolitics, ECB policymaker Gediminas Šimkus said on Monday.
Current Economic Uncertainty
"The probabilities that the next rate decision would be a hike or a lowering are the same - it's 50/50," the Lithuanian governor told reporters. "But no-one knows when that decision comes."
Governor Simkus' Insights
(Reporting by Andrius Sytas; Writing by Balazs Koranyi and Francesco Canepa in Frankfurt; Editing by Toby Chopra)
Key Takeaways
- •ECB's Simkus sees a 50/50 chance for rate changes.
- •Uncertainty in trade and geopolitics affects decisions.
- •No clear timeline for the next rate decision.
- •Economic conditions are unpredictable.
- •ECB's policy direction remains uncertain.
Frequently Asked Questions about ECB's Simkus sees equal chance of rate hike or cut
1What is monetary policy?
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
2What is the European Central Bank?
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability and oversee the financial system.
3What is an interest rate hike?
An interest rate hike is an increase in the interest rate set by a central bank, which can affect borrowing costs, consumer spending, and overall economic activity.
4What is an interest rate cut?
An interest rate cut is a decrease in the interest rate set by a central bank, aimed at stimulating economic activity by making borrowing cheaper.
5What is economic uncertainty?
Economic uncertainty refers to the unpredictability in economic conditions, which can affect investment decisions, consumer confidence, and overall economic growth.
