Central Banks
ECB’s Kazaks Warns Against Going Too Far With Interest-Rate Cuts
- Inflation not on track to fall below 2%, Latvian official says
- Market bets on further easing ‘not massively out of line’
Martins Kazaks
Photographer: Andrey Rudakov/BloombergThe European Central Bank should lower interest rates further but probably won’t need to take them to levels that would stimulate economic expansion, according to Governing Council member Martins Kazaks.
In an interview, the Latvian official argued that inflation isn’t on track to fall below 2%, and that the ECB can afford to gradually trim borrowing costs to the point — known as neutral — where they stop restricting growth.