Kazaks: "Fog Is Currently Too Thick" To Predict May Meeting Outcome

BBG runs comments from ECB Governing Council member Kazaks, who speaks with Latvia’s TV3.

• Kazaks stresses that you cannot say that the ECB has reached the stage where it has stopped raising interest rates, as inflation continues to reside at very high levels. Still, the usually hawkish Kazaks is clearly cognisant of the risks surrounding the banking sector, noting that the “fog is currently too thick” when it comes to predicting the outcome of the ECB’s May meeting.
• When it comes to the recent banking tumult Kazaks notes that uncertainty in the financial markets is high at present, while pointing to well capitalised banks, with financial resources “available” in Europe. Kazaks flags the close monitoring of the situation on the part of the relevant authorities, while playing down any comparison to the GFC, highlighting much stronger levels of bank supervision vs. then, along with higher capitalisation at banks.