ECB’s Kazaks Leans Toward October Cut But Warns Markets

The European Central Bank is likely to lower borrowing costs at this month’s meeting and beyond, but some investors’ and economists’ easing expectations appear exaggerated, according to Governing Council member Martins Kazaks.

“We will discuss and decide when we meet next time and will get more information until then, but recent data clearly point in the direction of a cut,” the Latvian central-bank chief said in an interview in Riga. “The risks to the economy have become more pronounced and the risks of still sticky domestic, especially services, inflation and too-weak growth are increasingly balanced with some tilt towards weak growth.”