Reported about 1 month ago
Latvian central bank governor Martins Kazaks stated that the European Central Bank (ECB) does not need to consider lowering rates below neutral levels at this time, despite the possibility of needing to ease policy faster than previously anticipated. Kazaks emphasized that for rates to fall below neutral, there would need to be a significantly weaker economic baseline and a clear risk of a sustained undershoot of the inflation target, which he does not see at the moment. While inflation may decline faster than expected, Kazaks believes this does not fundamentally alter the economic outlook, and that the ECB should remain cautious with its policy decisions.
Source: YAHOO