European Central Bank Governing Council member Kazaks (governor of Latvia's central bank) spoke on Thursday. He led with saying he's very much open to a discussion on a September rate cut, and that even with a couple more cuts the Bank's monetary policy would still be restrictive.
- A gradual approach to rate cuts would be best.
- Cuts are possible even if inflation goes sideways
- Services inflation has been stubborn
- The Bank is still on the path to the 2% inflation target next year
Kazaks added that he is worried by the weakness showing in the European economy, and that a lack of structural improvements are holding back growth.
ECB's Kazaks
