Inflation stabilisation paves way for rate cuts – ECB’s Kazaks

Martins Kazaks, a member of the European Central Bank‘s (ECB) Governing Council, is calling for further rate cuts, citing the nearing stabilisation of consumer price growth.

In an interview with Latvia’s TV3 on Monday, Kazaks stated that inflation is close to being under control and urged for an interest rate reduction at the ECB’s upcoming meeting on December 12. This would mark the fourth rate cut since the easing cycle began in June.

However, Kazaks acknowledged that the outlook remains uncertain due to geopolitical risks, including potential US trade tariffs, which could affect Europe’s economy. Despite these concerns, he expressed confidence in Europe’s economic recovery.

ECB Chief Economist Philip Lane also weighed in on the potential impact of US trade policies. Speaking to the Financial Times, Lane noted that the effects on euro area inflation could be unpredictable, depending on the sequence of events and the interplay of disinflationary and inflationary forces.

Attribution: Bloomberg

Subediting: Y.Yasser