ECB Governing Council member Martins Kazaks has expressed a steadfast stance on interest rates, emphasizing the need for absolute certainty that inflation is under control before considering any reductions.
Kazaks highlighted, “This decision right now to keep rates at current levels is to be really convinced inflation won’t rise again.”
“We have to be convinced that inflation has been beaten — then we can step by step lower rates,” he articulated, pointing out the distinction between short-term suppression of inflation rates and the long-term confidence required to ensure they do not resurge.
Kazaks further clarified, “One thing is to push inflation lower; another is to be convinced inflation won’t rise again.”
Thus, “that’s why there’s this cautiousness.”
