Central Banks
ECB’s Kazaks Says Bets on Spring Rate Cuts Look Optimistic
- Moving too soon risks a return of inflation, he says
- Latvian central bank chief speaks in national radio interview
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European Central Bank Governing Council member Martins Kazaks said investor hopes for monetary easing at one of the next two meetings might be too aggressive.
“At the moment, there are expectations that the rates could be cut in the spring, in March or April — I wouldn’t be optimistic,” Kazaks told Latvijas Radio. “I would be cautious and I would wait until the inflation story is over. Then we can safely breathe and those rates can be lowered step by step.”