“I think this will start to happen at the beginning of the summer,” Kazaks said, while emphasizing that rate cuts will be carried out carefully, gradually, as the economy responds, and that rates should not be expected to return to zero.
He also noted that, according to financial market forecasts, a rate cut is expected in June. “I wouldn’t mind it at the moment. So I think that before Ligo we can also see the Central Bank start cutting rates,” Kazaks said.
The President of the Bank of Latvia also emphasized that uncertainty is still high, so we need to be very careful so that inflation does not start once more.
It has already been reported that the ECB Council, at its meeting on March 7 this year, decided to leave interest rates unchanged for the fourth time in a row, including the main rate on refinancing operations kept at 4.5%, the overnight deposit rate (interest rate on deposits on one business day) was kept at 4%, and the overnight loan rate remained at 4.75%.
In order to combat inflation, interest rates were previously raised by the ECB Council at ten consecutive meetings.
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2024-03-27 10:04:35