ECB’s Kazāks: First Interest Rate Cut in June if Disinflation Continues

12 April 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks on Friday said that if inflation continued to descend towards the 2% target, interest rates would be cut in June.

In an interview with Latvian television channel TV3, Kazāks, who heads Latvijas Banka, said, ‘If really nothing changes [regarding the inflation path], then June will be the month where we see the first rate cut.’

‘If we are really in the direction of our goal of 2%, then to my mind we are really close to a turning point when these rates can be lowered step by step’, he said.

The approach of the moment to cut rates was ‘good news’ for businesses and the public, he said.

Future interest rate decisions would continue to be subject to incoming data, he said.