The European Central Bank (ECB) is poised to continue its gradual reduction of interest rates, according to Martins Kazaks, an ECB Governing Council member. In an interview with Latvia’s public broadcaster on Tuesday, as reported by Bloomberg, Kazaks emphasized the need for steady rate cuts to navigate the current economic landscape.
“The base scenario at the current moment—and to my mind the one that is the most appropriate—is to continue to lower rates step by step,” Kazaks stated. His comments reflect a cautious approach aimed at fostering economic stability within the eurozone.
The ECB recently announced a 25 basis point reduction in key interest rates set for October. Specifically, the interest rate on benchmark deposit facilities will decrease to 3.25 percent, the rate on main refinancing operations will cut to 3.4 percent, and the marginal lending facilities rate will drop to 3.65 percent.
This move aligns with the ECB’s broader strategy to stimulate growth and manage inflation. By lowering borrowing costs, the ECB aims to encourage investment and spending across member states, impacting global markets and investors keeping a close watch on European economic policies.
Reference(s):
cgtn.com
