ECB’s Kazāks: ECB Should Take a Measured Approach to Cutting Rates

16 May 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Thursday that there was no need to rush rate cuts after June 6.

On the margins of a conference in Portorož, Slovenia, Kazāks, who heads the Bank of Latvia, said to Reuters, ‘The economy is not extremely weak, so there is no rationale to rush rate cuts. Let's do it in a measured way and remain patient’.

Rate cuts should not be expected at every Governing Council meeting, as inflation would be ‘moving sideways for most of the year’, he said.

According to Kazāks, meetings with updated economic projections were particularly useful.

‘I think we would benefit from a measured path going down. It's much easier to take decisions when we have the outlook meetings and new projections’, he said