The European Central Bank's interest rate cut is nearing its end, officials call for a "wait-and-see mode" to deal with uncertainty.

The European Central Bank announced its eighth interest rate cut in this current cycle last week, and it is expected to keep rates unchanged at the next meeting in July. According to sources, some policymakers even indicated that the rate cuts may have come to an end. ECB officials emphasized the flexibility of data-dependent decision-making, indicating a shift towards a cautious stance, with a high probability of no change in interest rates at the July meeting. Gediminas Simkus, ECB Governing Council member and Governor of the Central Bank of Lithuania, called for a pause in interest rate adjustments, citing the "great uncertainty" surrounding US trade policies. Simkus stated on Thursday, "After eight rate cuts, we have reached a neutral interest level - now it is important to maintain decision-making flexibility and not lean towards any particular direction. The current economic situation is very uncertain - no one knows what decision the US will make on July 9th." Following the ECB's latest interest rate cut (reducing the deposit rate to 2%), Simkus made his remarks. Sources revealed that ECB President Lagarde has suggested that the loose policy is nearing its end, with some policymakers believing the policy may have already ended. Simkus said, "I think it is necessary to pause for a moment and reassess our overall direction. I do not rule out the possibility of further rate cuts this year, as I believe there is an increased risk of inflation falling below the medium-term target." His comments align with those of Franois Villeroy de Galhau, ECB Governing Council member and Governor of the Bank of France. Villeroy de Galhau stated that he does not have a specific stance on future interest rate changes, and decisions will depend on relevant data. In an interview on Thursday, he said, "The future direction of interest rates will depend on the evolution of inflation. I never pre-determine a fixed position - I believe in practical and flexible monetary policy, and we need to wait and see." Similarly, Christodoulos Patsalides, Governor of the Central Bank of Cyprus, emphasized that the Governing Council is "flexible and agile." Simkus added, "It is too early to predict what will happen. In this uncertain environment, relying on data and evaluating step by step is crucial."