ECB Will Soon Reach Terminal Rate If Baseline Holds, Kazaks Says

European Central Bank Governing Council member Martins Kazaks said interest-rate cuts are nearing an end, assuming the base case for inflation stabilizing at 2% over the coming months comes to pass.

“If the current baseline holds, we will soon reach the terminal rate,” the Latvian official said Wednesday in a presentation for an MNI event. “Nevertheless, it may be the case that, although most likely, the baseline probability is below 50%.”