Latvian ECB Governing Council member Martins Kazaks said there is now “value in holding rates at the current levels,” signaling that the era of obvious rate hikes or cuts is over. Speaking in an interview, the central banker stressed that a “steady-hand policy is appropriate,” suggesting little urgency for additional easing from the ECB in the near term.
Kazaks further emphasized that unless the Eurozone economy suffers a major blow, there’s limited justification for lowering interest rates. His stance comes after ECB President Christine Lagarde also struck a cautious tone following yesterday’s decision to keep the deposit rate unchanged at 2.00%.
Separately, Lithuanian Governing Council member Gediminas Šimkus noted “inflation is expected to stay at 2% level in the medium term.”
