Jul 2, 2024
Kazaks Says Market Bets of 1-2 ECB Cuts Consistent With Baseline
Bloomberg News
,![Martins Kazaks, governor of the Bank of Latvia, during a panel session at the Ten Years Of Euro In Latvia conference in Riga, Latvia on Friday, Jan. 26, 2024. The conference brings policy makers, experts and civil society representatives who played a pivotal role in the introduction of the euro all across Europe and specifically in Latvia. Photographer: Andrey Rudakov/Bloomberg, Bloomberg Martins Kazaks, governor of the Bank of Latvia, during a panel session at the Ten Years Of Euro In Latvia conference in Riga, Latvia on Friday, Jan. 26, 2024. The conference brings policy makers, experts and civil society representatives who played a pivotal role in the introduction of the euro all across Europe and specifically in Latvia. Photographer: Andrey Rudakov/Bloomberg](/polopoly_fs/1.2091859.1719911125!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/martins-kazaks-governor-of-the-bank-of-latvia-during-a-panel-session-at-the-ten-years-of-euro-in-latvia-conference-in-riga-latvia-on-friday-jan-26-2024-the-conference-brings-policy-makers-experts-and-civil-society-representatives-who-played-a-pivotal-role-in-the-introduction-of-the-euro-all-across-europe-and-specifically-in-latvia-photographer-andrey-rudakov-bloomberg.jpg)
(Bloomberg) -- Expectations that the European Central Bank will cut interest rates one or two more times this year seem “quite reasonable,” Governing Council member Martins Kazaks told CNBC in an interview.
Policymakers should take time to assess euro-area inflation data as it arrives, Kazaks said, adding that price pressures are expected to move sideways in the coming months.
He argued that the ECB won’t keep rates high for unnecessarily long, but also said that he wouldn’t like to see any further delays in reaching the 2% target.
Kazaks also said he sees “no reason” to activate a bond-buying backstop to address the latest market rout in France.
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