ECB’s Kazāks: “No Reason to Lower Rates” Now

16 September 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Tuesday that there was currently no reason for the ECB to cut interest rates further.

In an interview with Latvian TV TV24, Kazāks, who heads Latvijas Banka, said that “[a]t the moment, inflation is around 2% [and] economic growth is, I’d say, weak.” There was “no reason to lower rates,” he said.

The ECB would take the necessary steps bearing in mind global economic developments, high geopolitical uncertainty and the various risks, he said.

“[T]aking into account this uncertainty, and should the economy become weaker, if inflation starts to decline very significantly below our 2% goal, then the ECB could also lower rates,” he said.

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