ECB’s Kazāks: Can Keep Cutting Rates if Baseline Scenario Holds

27 March 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Thursday that the ECB could keep cutting interest rates as long as the baseline scenario was still valid.

In an interview with Bloomberg News, Kazāks, who heads the Latvijas Banka, said that if the baseline scenario holds, then ‘we can probably hope for a gradual reduction in rates in the future.’

Tariffs were a source of uncertainty and could cause a diversion of Chinese goods into Europe, according to Kazāks.

‘The uncertainty at this point is very high and the main source of uncertainty is geopolitics’, he said.

Ongoing changes to US trade policy made planning hard, he said.

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