European Central Bank board member: US tariffs are dragging down economic rise, further rate cuts are needed.

Jin10 data reported on May 9, the European Central Bank board member Simkus stated that due to the eurozone’s economy not yet feeling the full impact of U.S. tariffs, inflation is expected to continue to slow down, but the European Central Bank must further drop interest rates. He mentioned that although economic activity performed well initially, recent geopolitical trends, including U.S. President Trump’s trade threats, are bad news. Meanwhile, he observed “significant anti-inflationary forces” at play. He stated, “For me, the decision in June is very clear; we need to cut rates again.” He said, “It is possible to cut rates again after June,” although the timing is still unclear. Since June of last year, the European Central Bank has cut rates seven times, and officials have indicated that they are prepared to take more measures as U.S. tariff threats impact economic growth.