ECB Will Likely Wait Until December to Cut Rates, Says Kazimir

The European Central Bank (ECB), according to Jan Kazimir, a board member of the Slovak central bank, is likely to keep interest rates stable until December this year. In an interview, Kazimir emphasized the importance of monitoring the financial markets and macroeconomic indicators before making a final decision on reducing interest rates. He highlighted the need to keep a close eye on the economic conditions in the eurozone, taking into account numerous factors, including inflation and slowing growth.

Kazimir reminded that while the market had anticipated possible easing of policy as soon as October, ECB's actions are usually based on long-term trends rather than short-term reactions. He underscored that the decision regarding rate changes would not only be influenced by market expectations in the short term but also by long-term prospects that must consider the current economic circumstances.

Investors are closely watching the ECB for signals regarding the next steps in the regulator's policy. Such expectations are further supported by recent data on inflation and economic growth in the region. Kazimir does not rule out the possibility of further discussion on a new approach to monetary policy, but he emphasizes the need for comprehensive analysis before making final decisions.

These remarks further reinforce the view that the ECB, which has long maintained a strict monetary policy stance, may finally be moving towards a more flexible approach, but only if macroeconomic conditions allow for such a potential rate cut.