ECB’s Kazaks Says Rate Cuts Can Continue If Baseline Holds

The European Central Bank can probably lower borrowing costs further if the current economic trajectory is maintained, according to Governing Council member Martins Kazaks.

If the ECB’s baseline scenario holds, “we can probably hope for a gradual reduction in rates in the future,” the Latvian official said Thursday in a television interview. “But the uncertainty at this point is very high and the main source of uncertainty is geopolitics.”