ECB’s Kazaks: June rate cut likely, future moves data dependent

ECB Governing Council member Martins Kazaks indicated in a Bloomberg Adria interview that the central bank is nearing its 2% inflation target, paving the way for interest rate cuts. However, he emphasized that any reduction in rates should be “cautious” and “gradual,” and that the process should not be rushed.

“From today’s perspective, it’s quite likely June is going to be the time when we start the rate cuts,” Kazaks noted. However, he stressed the importance of relying on incoming data for decisions beyond June, stating, “After June, going forward, let’s see again the data.”

Kazaks highlighted the ECB’s approach of making decisions on a meeting-to-meeting basis, based on the latest economic data. He described this strategy as “an appropriate one so far,” given the high levels of uncertainty.