ECB's Simkus Says Rate Hike Probability Higher Than Hold

European Central Bank (ECB) Governing Council member and Bank of Lithuania Governor Gediminas Simkus delivered a hawkish message during Friday's European trading session. He indicated that the probability of an interest rate increase in the near term is higher than the probability of holding rates steady.

Simkus's comments suggest growing confidence within the ECB that inflation risks warrant further monetary tightening, even as the eurozone economy faces headwinds. Markets now price a higher chance of a rate hike at the next ECB meeting.

This hawkish bias could support the euro (EUR) against major peers, particularly if incoming data confirms persistent price pressures.