ECB’s Kazaks Hopeful That Step-by-Step Rate Cuts May Continue

The European Central Bank should be able to carry on with gradual interest-rate reductions, according to Governing Council member Martins Kazaks.

“At the moment financial markets are expecting that rates will be lowered a few more times,” the Latvian central bank chief told public broadcaster LTV on Tuesday. “It will all be dependent on what happens with inflation, that is dependent on what happens with the labor market — at the moment it looks pretty hopeful that step-by-step cuts could also continue this year.”