European Central Bank Governing Council member Kazaks: Interest rates may be lowered again in June, but caution is required
Martins Kazaks, a member of the European Central Bank's Governing Council, supports further lowering borrowing costs but emphasizes the need for caution. He pointed out that the monetary policy meeting in early June will make decisions based on the latest data, with the current market generally expecting interest rate cuts. He believes that gradually lowering interest rates is reasonable with inflation close to 2%. However, the central bank governors of Germany and Spain have reminded that policy should be formulated cautiously against the backdrop of uncertain U.S. tariff policies
According to the Zhitong Finance APP, Martins Kazaks, a member of the European Central Bank's Governing Council, expressed support for further lowering borrowing costs while urging decision-makers to maintain a cautious approach.
He stated, "We will hold our next monetary policy meeting in early June, at which time we will make decisions based on the latest data. The current financial markets generally expect a rate cut in June again. Based on the current data, this expectation is reasonable."
The Governor of the Bank of Latvia mentioned in an interview, "From the data available today, in my view, further lowering the interest rate is reasonable."
Previously, the European Central Bank had cut rates seven times in a row, and investors are betting on more rate cuts this year. Kazaks agreed with this.
However, he emphasized the prerequisite: "If inflation in Europe remains close to 2%—currently we see a trend of inflation converging towards around 2%—then gradually and cautiously lowering interest rates afterwards is feasible."
It is worth noting that just this Monday, the President of the German Central Bank, Joachim Nagel, and the President of the Spanish Central Bank, Jose Luis Escriva, have both spoken out, reminding that in the context of uncertainty regarding U.S. tariff policies, the European Central Bank needs to be particularly cautious in formulating its next monetary policy
