ECB's Simkus says it is clear that they have deviated from the baseline scenario

This statement from ECB's Simkus indicates a shift in the central bank's outlook, suggesting that current economic conditions may not align with previous expectations.

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Context

Such a deviation could prompt markets to reassess the ECB's policy trajectory, impacting interest rates and potentially the EUR, as investor sentiment adjusts to a new understanding of growth or inflation risks.

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