ECB’s Kazāks: Shouldn’t Rush Next Move, But Insurance Cut an Option

21 September 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Sunday that the ECB had no need to rush its next policy move but refused to rule out the possibility of an insurance interest rate cut.

In an interview with Bloomberg, Kazāks, who heads the Latvijas Banka, said that it would be “naïve” to think that inflation could be continuously kept at the 2% target and therefore small deviations should not trigger any moves.

“We don’t need to rush and as central bank we shouldn’t jump around at each and every meeting,” he said. “We will move rates if necessary, but currently we have delivered on our 2% target.”

He described the December meeting as “much richer in terms of data,” given the new projections that would be released then.

An insurance cut could be “an option,” according to Kazāks, who said it was “up to discussion” but emphasized that any such move would be limited in size.

He said that the inflation outlook looked “highly uncertain” and cited a potential “sizeable and quick” appreciation of the euro, the downward impact of the rerouting of inexpensive Chinese goods on inflation, and the rollout of the new Emissions Trading System as developments the ECB should be monitoring closely.

Inflation would hover around 2% and small deviations from target could be “easily be looked through,” he said.