--- title: "ECB Governing Council Member: A Second Rate Hike May Be Needed After June" type: "News" locale: "en" url: "https://longbridge.com/en/news/288090800.md" description: "ECB Governing Council member Simkus stated that a rate hike in June is \"all but certain,\" and added that it is \"very likely\" borrowing costs will need to be raised further thereafter. He indicated that the probability of a second rate hike is higher than that of no hike, although the exact timing remains uncertain. Simkus emphasized taking preemptive action to curb inflation and noted there is no need for excessive concern about the impact of tightening" datetime: "2026-05-29T15:21:32.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288090800.md) - [en](https://longbridge.com/en/news/288090800.md) - [zh-HK](https://longbridge.com/zh-HK/news/288090800.md) --- # ECB Governing Council Member: A Second Rate Hike May Be Needed After June Members of the European Central Bank's Governing Council have released one of the most hawkish policy signals so far this year, suggesting that a rate hike in June may be just the beginning of this tightening cycle, not the end. According to Bloomberg, ECB Governing Council member Gediminas Simkus stated that **a rate hike by the ECB in June is "all but certain," and it is "very likely" that borrowing costs will need to be raised further thereafter.** This stance is significantly stronger than the current attitude of most Governing Council members, who, while generally supporting a June rate hike, remain mostly vague and cautious about the subsequent path. **Simkus bluntly stated that "the probability of a second rate hike is higher than that of no hike," but admitted that the specific timing (July, September, or October) cannot yet be determined.** This remark effectively translates market expectations of "at least one more hike within the year" into a more formal policy inclination. His position is also highly consistent with current market pricing. Currently, traders have largely fully priced in the expectation of two rate hikes by the ECB within the year. In this context, Simkus's comments undoubtedly further reinforce the market's judgment that the ECB will continue to maintain its tightening stance. ## **Take Preemptive Action to Curb Inflation; No Need for Excessive Concern About Tightening Impact** Simkus stated that although there is currently a lack of sufficiently comprehensive hard data on inflation, market indicators and survey data consistently point to a "more inflationary environment." In his view, recent inflation data has not improved enough, nor is it sufficient to weaken the necessity of a rate hike in June. In explaining the logic behind the rate hike, **Simkus defined "prudence" as taking preemptive action—namely, curbing inflationary pressures as early as possible through rate hikes at the current stage, preventing the spread of second-round effects, and cutting off the potential spiral rise between wages and prices.** Regarding external concerns that monetary tightening could drag down the economy, Simkus maintained a relatively calm attitude. **He stated that there is no need to excessively amplify the direct impact on the economy of a single 25 basis point rate hike, or even the cumulative tightening of 50 basis points for the year, implying that the current intensity of tightening remains within the economy's tolerance range.** Discussing the new round of quarterly economic forecasts to be released by the ECB, Simkus pointed out that recent economic data and survey results overall present characteristics of "slightly higher inflation and slightly weaker growth." This means that the ECB may raise its future inflation path forecasts while slightly lowering its economic growth expectations. ### Related Stocks - [DAX.US](https://longbridge.com/en/quote/DAX.US.md) - [FXE.US](https://longbridge.com/en/quote/FXE.US.md) ## Related News & Research - [EU's biggest economies unite on capital markets oversight](https://longbridge.com/en/news/288119738.md) - [German Ifo business sentiment unexpectedly rises](https://longbridge.com/en/news/287328132.md) - [What smart people are saying about AI ROI crunch: 'Where's the revenue?'](https://longbridge.com/en/news/288034896.md) - [Analysis:Sri Lanka's surprise rate hike risks choking off IMF-backed recovery](https://longbridge.com/en/news/287790757.md) - [Fed's Paulson says 'healthy' for markets to weigh tighter policy outlook](https://longbridge.com/en/news/288078067.md)