European Central Bank board member Kazaks: Interest rates may be cut again in June, but caution must be exercised

European Central Bank Governing Council member Martins Kazaks expressed support for further lowering borrowing costs, but urged decision-makers to maintain a cautious stance. He said, "We will hold our next monetary policy meeting in early June and make decisions based on the latest data. The current financial markets widely expect another rate cut in June. Based on the current data, this expectation is reasonable." The Latvian central bank governor stated in an interview, "Based on the data we have today, I believe that further lowering interest rates is justified." Previously, the European Central Bank has lowered interest rates seven times in a row, and investors are betting that there will be more rate cuts this year. Kazaks agreed with this sentiment. However, he emphasized a prerequisite: "If the inflation rate in Europe remains close to 2% - currently we see a trend towards around 2% inflation - then gradually and cautiously lowering interest rates is feasible." It is worth noting that just this Monday, the Bundesbank President Joachim Nagel and the Bank of Spain Governor Jose Luis Escriva have both spoken out, warning that given the uncertainty surrounding U.S. tariff policies, the European Central Bank must exercise extra caution when formulating its next monetary policy steps.