Central Banks

ECB’s Narrow Path to Price Goal Keeps Hikes in Play, Kazaks Says

  • Latvian official sees no rate cuts in first half of next year
  • Kazaks supports discussing earlier halt to PEPP reinvestments

Martins Kazaks

Photographer: David Paul Morris/Bloomberg
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European Central Bank Governing Council member Martins Kazaks said there’s only a “narrow path” back to 2% inflation — meaning an extension to the euro zone’s unprecedented spate of interest-rate increases can’t be excluded.

“Even if I’m quite content with current level of rates, we can’t close the doors to further rate hikes,” the Latvian official said Friday. “The wage story is still there, and the geopolitical risks are still there. You don’t know how it’s gonna play out.”