ECB Official Sees No Immediate Need for Rate Cut Amid Economic Uncertainty

According to BlockBeats, European Central Bank (ECB) Governing Council member Kazaks stated that there is currently no need to lower interest rates. In an interview with TV24, he mentioned that the current inflation rate is approximately 2%, and economic growth is sluggish. He emphasized that there is no justification for a rate cut at this stage. This statement follows the ECB's decision last week to keep borrowing costs unchanged for the second consecutive meeting. Most policymakers believe there is no need for further rate cuts, although they remain open to action if necessary. Kazaks highlighted the high level of uncertainty in the global economic environment, particularly due to geopolitical factors, and noted that various risks persist. The central bank is closely monitoring economic developments and will make necessary decisions. He pointed out that if uncertainty continues, coupled with further economic weakening or inflation significantly falling below the 2% target, the ECB might consider implementing a rate cut.