ECB’s Kazaks backs market bets on cuts if data holds

DUBROVNIK, Croatia, June 14 (Reuters) – The European Central Bank can continue to lower interest rates broadly how the market expects if inflation keeps easing as envisaged, ECB policymaker Martins Kazaks told Reuters on Friday.

The ECB lowered its policy rate from a euro-era high last week but held back from any promise to follow up its move, which came with caveats about wages and services inflation staying strong.

Kazaks said inflation would be bumpy and move sideways this year but he continued to believe that it was on its way to the ECB’s 2% target next year, justifying more cuts provided that the data continued to come in as the central bank expects.

Source: REUTER