ECB Governing Council member Martins Kazaks indicated that after two rate cuts this year, “this is not the final destination.” Borrowing costs remain “pretty restrictive”, and “these rates will continue to go down,” he added.
Kazaks noted that the speed of these rate cuts will largely depend on the path of services inflation and the broader outlook for Europe’s struggling economy.
“If we look at what financial markets expect — and I don’t have any serious reason not to agree with them — then by the middle of next year, rates are expected at 2.5%,” he added.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/568055-ecbs-kazaks-rate-cuts-not-over-could-fall-to-2-5-by-mid-2025/&media=https://www.actionforex.com/wp-content/uploads/2018/04/f-ecb13.jpg&description=ECB Governing Council member Martins Kazaks indicated that after two rate cuts this year, "this is not the final destination." Borrowing costs remain “pretty restrictive”, and “these rates will continue to go down," he added.){kind=link}