In an op-ed published today, ECB Governing Council member Peter Kazimir addressed market expectations for two additional rate cuts before the end of the year. He stated that while these market bets are “not entirely misplaced,” they should not be considered a “given or a baseline scenario.”
Kazimir highlighted that inflation is “on track” to return to the target but cautioned, “we are clearly not there yet.” He emphasized the persistent risks of inflationary pressures due to various domestic and global factors. “There is still a non-negligible risk of inflationary pressures re-emerging,” he noted.
“There is no need to rush our decisions,” Kazimir added, advising a measured approach. “Enjoy the summer lull and wait for the much-anticipated September ‘health check.’ The upcoming data, combined with fresh forecasts, will set the stage for any necessary decisions.”
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