ECB must wait until Sept. for next rate cut – Kazimir

The European Central Bank’s September policy meeting will play a crucial role in deciding whether to implement further interest rate cuts, Bloomberg reported, citing Government Council member Peter Kazimir.

In an op-ed published on Monday, Kazimir suggested that July was unlikely for such a decision, emphasising the need for additional data and time to evaluate economic risks, according to Bloomberg.

He highlighted September as a pivotal month, citing forthcoming forecasts and the need to reassess monetary policy settings, particularly regarding interest rate adjustments.

Kazimir’s remarks are among the most explicit from ECB policymakers since the recent quarter-point rate cut. He emphasised a cautious approach, given the uncertainty surrounding inflation forecasts. Additionally, Latvia’s Martins Kazaks warned of a potential return of inflation.

Later in the day, Bundesbank President Joachim Nagel and Austria’s Robert Holzmann, who dissented against the recent rate cut, were scheduled to speak, adding to the discussion on monetary policy decisions.