ECB’s Kazāks Sees Monetary Policy ‘Still in a Good Place’

24 August 2025

ECB’s Kazāks Sees Monetary Policy ‘Still in a Good Place’
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 David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks on Sunday again endorsed the ECB’s monetary policy pause.

In an interview with Bloomberg on the margins of the Federal Reserve’s annual Economic Policy Symposium in Jackson Hole, Kazāks, who heads Latvijas Banka, said, ‘We’ve seen good news, we’ve seen bad news, but not sufficiently big news to lead to a rethink of what we would need to do. I think we are still in a good place.’

‘We are at the target, we have delivered — now we need to ensure that we remain at around target’, the news agency quoted him as saying. ‘We know that at the beginning of next year, we will somewhat undershoot but of course the question is, how it’ll start to rebound.’

The lack of expectations of another ECB rate cut in 2025 is ‘very much in line with the baseline’, he said. ‘Markets understand us.’

In any case, another 25bp cut would not ‘shift the economy massively’, he argued. ‘It’s more like an insurance story in my view.’