ECB’s Kazaks Says Services Prices Bigger Worry Than Slow Growth

The European Central Bank Governing Council member Martins Kazaks said the danger of persistent services inflation currently outweighs his concerns over the economy.

“In my opinion, the risk of service price inflation is still more significant at the moment, but as we move forward step by step, we will see how the situation develops,” the Latvian central banker told Leta newspaper in an interview published Monday. “Undoubtedly, the direction of rates is downward. How quickly the rate cut will happen depends on how the economy develops further.”