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Investing.com -- European Central Bank Governing Council member Martins Kazaks stated there is little justification for additional interest rate reductions unless the economy faces a significant downturn.
The Latvian central-bank chief noted that with inflation at 2% and the euro zone economy performing largely in line with the ECB’s latest forecasts, the case for a September rate cut - which most economists had anticipated before this week’s meeting - is not clear.
"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 in an interview in Frankfurt. "At the current juncture, a steady-hand policy is appropriate."
Kazaks’ comments suggest the ECB may maintain its current monetary policy stance rather than continuing with further easing measures in the near term.
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