By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mārtiņš Kazāks said on Friday that the ECB had yet to see the full impact of the appreciation of the euro, adding that it would likely feed through by this spring.
In an interview with Bloomberg, Kazāks, who heads the Latvijas Banka, said that the ECB was still waiting to see what the economic impact of the euro appreciation, which started back in early 2025, would be.
Estimates suggested it could take around 12 months for currency moves to feed into the economy, he said, adding that “we will likely see the full impact of the euro’s strengthening last year toward late spring.”
The current situation did not require a reaction by the ECB, he said, adding that policymakers were now in “monitoring mode.”
Kazāks described the ECB’s current approach as a “manifestation of attention” and rejected the idea of a “verbal intervention”, noting that the ECB was not going “that far.”
“My worry is very much that the euro has strengthened over the past year not because the Eurozone economy has gotten stronger but because uncertainty has increased and the US dollar has weakened,” he said.
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