ECB’s Kazāks: Interest Rates Likely to Stay Put Absent Major Economic Shock

2 October 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Thursday that the ECB would keep interest rates at current levels unless the economy was hit by another shock.

In an interview with Latvian news portal Delfi, Kazāks, who heads Latvijas Banka, said that in the absence of significant new developments, interest rates could stay at their current levels, though he cautioned that uncertainty remained high.

“If we look from today’s point of view, the ECB’s 2% rate is very appropriate,” he said.

He said inflation risks were two-sided, adding that the ECB was “keeping its eyes open” at every meeting and maintained full flexibility to adjust interest rates in either direction.

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