ECB’s Kazāks: ‘Gradual, Cautious Rate Cuts’ Could Come, Move in June ‘Pretty Possible’

12 May 2025

ECB’s Kazāks: ‘Gradual, Cautious Rate Cuts’ Could Come, Move in June ‘Pretty Possible’
Mārtiņš Kazāks, governor of the Latvijas Banka, at the European Central Bank Forum on Central Banking in Sintra, Portugal, on July 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Monday that another interest rate cut in June was quite possible.

In an interview with Latvian TV LTV, Kazāks, who heads the Latvijas Banka, said that ‘financial markets at the moment are expecting another rate cut in June’, and ‘looking at today’s data, that is a pretty possible step.’

Kazāks said the ECB should check the data on June 5 and ‘then we will see.’

‘Gradual, cautious [rate] cuts could come with the anchoring of inflation to around the 2% target’, he said.

 

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