ECB’s Kazaks Says on Track to Cut Interest Rates in June
(Bloomberg) — The European Central Bank is on track to start lowering borrowing costs in June, according to Governing Council member Martins Kazaks.
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“If we are really in the direction of our goal 2%, then to my mind we are really close to a turning point when these rates can be lowered step by step,” he told Latvia’s TV3 channel on Friday. “If really nothing changes then June will be the month where we see the first rate cut.”
Kazaks spoke the day after the ECB kept interest rates steady for a fifth meeting, while sending its clearest signal yet that cooling inflation will soon allow it to commence cuts.
The Latvian central banker said that rate moves after June would be calibrated to be in line with data.
If inflation continues to slow, then the ECB will be able to continue to cut, he said. “The moment is close — for businesses and the public that’s good news.”
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