Latest news with #MartinsKazaks
Bloomberg
5 days ago
- Business
- Bloomberg
ECB's Kazaks Sees Little Need for Further Rate Cuts
Good morning. A European central banker sees little need for further easing. A $50,000-a-night resort showcases Africa's luxury travel boom. And the Underground is broiling City commuters. Listen to the day's top stories. There's little reason for the European Central Bank to lower interest rates further unless the economy suffers a major blow, according to Governing Council member Martins Kazaks. With inflation at 2% and the euro zone largely performing in line with the ECB's latest forecasts, the grounds for a cut in September aren't obvious, the Latvian central-bank chief said in an interview. ' There is value in holding rates at the current levels and the time of no-brainer moves to hike or cut is over,' Kazaks said.
Zawya
01-07-2025
- Business
- Zawya
ECB's Kazaks sets 10% pain threshold for tariffs and the euro
SINTRA, Portugal - A 10% U.S. tariff on European goods, combined with a similar or greater appreciation of the euro against the dollar, would significantly impact euro zone exports, European Central Bank policymaker Martins Kazaks said on Monday. As trade negotiations between the U.S. and the EU remain uncertain, economists are speculating about the conditions that might prompt the ECB to intervene with further interest rate cuts to support the euro zone economy. Kazaks said euro zone imports would already be affected by a 10% U.S. duty - the baseline to which EU officials have resigned themselves - and a 10% or greater rise in the euro's exchange rate against the dollar, which would be just 1% more than what it has gained since Liberation Day. Higher tariffs abroad and a stronger currency make a region's exports more expensive. "If there is a 10% tariff plus a 10%-plus euro appreciation of the exchange rate, this is large enough to affect export dynamics," he told Reuters at the ECB's annual forum on Central Banking in Sintra, Portugal. The euro was trading at $1.178 on Tuesday, up 13.8% since the start of the year and 8.9% since the beginning of April. Kazaks described the euro zone economy as "weak", although still showing "some growth", adding that inflation was "more or less" at the central bank's 2% target, implying little need for major policy changes. The ECB's latest baseline projection showed inflation at the ECB's 2.0% target this year, before dipping to 1.6% the next and returning to 2.0% in 2027. "The majority of the rate adjustment has been done," Kazaks said, repeating his previous position. "If there are further cuts, they will be small and have signalling value, provided that we remain in the baseline." He also warned that China "was starting to dump goods on Europe", which would both push down inflation and undermine European competitiveness.
Bloomberg
01-07-2025
- Business
- Bloomberg
ECB's Kazaks Says Any Further Rate Adjustments Won't Be Big
The European Central Bank will make minor changes to borrowing costs at best as long as the economy develops in line with the most recent projections, according to Governing Council member Martins Kazaks. With inflation at the 2% target and the region still growing, there's no need for more forceful action — especially as a lot of the easing enacted since June last year is continuing to feed through to companies and households, the Latvian official said Monday in an interview.
Bloomberg
11-06-2025
- Business
- Bloomberg
ECB's Kazaks Says Some Fine-Tuning Rate Cuts ‘Quite Likely'
European Central Bank Governing Council member Martins Kazaks said further interest-rate cuts may be needed, according to Econostream Media. 'We've done a lot in terms of rate cuts, and monetary policy will need to remain vigilant to ensure that inflation stays around 2%,' he was cited as saying in an interview conducted June 6. 'Will it require some further cuts for fine tuning? Quite likely.'
Reuters
06-06-2025
- Business
- Reuters
ECB's Kazaks calls time on rate-cut streak
FRANKFURT, June 6 (Reuters) - The European Central Bank should stop cutting interest rates at every meeting and instead keep its powder dry given an uncertain economic outlook, ECB policymaker Martins Kazaks told Reuters. The ECB cut rates for the seventh time in a row on Thursday to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policies dealt it further blows. Kazaks called time on that year-long easing cycle, saying the ECB should keep "policy space" to cut rates again at a later date if needed. "I don't think the market should expect the trajectory of cutting rates at every meeting to continue," he said in a phone interview. "There is no need and there is value in maintaining policy space." Most ECB policymakers back keeping interest rates, now at 2%, on hold at their next gathering in July, or possibly longer, depending in part on the prospects for trade with the United States, sources told Reuters. Kazaks also supported a possible pause but warned against making any firm commitment - of "forward guidance" in central bank parlance - given an ever-changing political landscape. "We don't get much data between now and the July meeting so it may well be the case that we pause," Kazaks said. "But uncertainty remains very high, the political situation may change every day. So forward guidance isn't your friend in these circumstances." Even if the ECB were to cut rates further, this would amount to small, "fine-tuning" moves for as long as inflation was projected to stay at 2% over the medium term, Kazaks said. "In terms of the rate cutting, we've done a lot," he said. "If there are further cuts, they will be fine-tuning, unless we shift out of the baseline scenario." The ECB published new projections on Thursday that see inflation at 2% this year, 1.6% in 2026 and 2% in 2027. Kazaks welcomed the new forecasts but warned the dip next year, which the ECB chalked up to a stronger euro and cheaper fuel, called for vigilance. "We are in a good place, we have delivered inflation at 2%, but it's important to maintain it at around 2%," he said. "The staff forecast expects inflation to remain below 2% for some time so we have to remain vigilant and see what happens in the economy."
