ECB’s Kažimír: Still Need ‘Undeniable Confirmation’ of Disinflation; Risks to the Upside

10 March 2025

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Peter Kažimír on Monday said that he was still looking for incontrovertible evidence that disinflation was here to stay, and warned that risks to inflation were on the upside.

In a statement issued on the website of the National Bank of Slovakia, which he heads, Kažimír said that the Council’s decision last week to cut rates ‘brought us visibly closer to our destination, but it doesn’t mean our job is done.’

Amid ‘exceptional’ uncertainty, policymakers had to remain on guard, he said.

‘Despite encouraging inflation trends, I am still looking for undeniable confirmation that disinflation will stay’, he said. ‘Unfortunately, inflation risks remain tilted to the upside.’

Geopolitics and the prospect of a trade conflict made things yet more complicated, he said. The ECB had to closely evaluate all information with ‘cautious judgment’ and flexibility, he said.

‘This flexibility means staying open-minded and keeping all options open, whether we decide to cut again or pause’, he said. ‘Whatever we do will depend entirely on incoming data.’

The implications of current developments for inflation were unclear and argued against early declarations of victory, he said.

‘Now is not the time for automatic decisions or rushing’, he said. ‘It would be most unfortunate to see hard-earned progress unravel. We have come a long way, but the job is not finished.’