ECB’s Kazāks: Future Rate Cuts Dependent on Economic Outlook

10 June 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – It is too early to make definitive statements about future rate cuts, as these will depend on the inflation and economic outlook, European Central Bank Governing Council member Mārtiņš Kazāks said Monday.

In an interview with Latvian broadcaster TV3, Kazāks, who heads the Bank of Latvia, said, ‘The financial markets at the moment are pricing in one to two more cuts this year — we will see, because right now it's too early to call specific numbers or dates’.

‘Inflation has a tendency to return’, he warned. At the same time, it was 'good news' that the ECB had started to ease policy, he said.