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MNI BRIEF: Too Soon For ECB To Discuss Cuts - Kazaks

(MNI) LONDON
(MNI) London

Latvian central bank head tells MNI event rate cut discussions now would be premature.

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Monetary policy transmission across the eurozone is strong and bank lending shows further tightening, but it is too soon to consider rate cuts, Bank of Latvia head and ECB Governing Council member Martins Kazaks told an MNI event on Wednesday.

"Inflation is moderating from earlier peaks, reflecting the fading impact of previous upward shocks," Kazaks said, according to the text of prepared remarks. But the ECB still needs to watch out for domestic price pressures, with profit margins still to soften and a clear peak in wage growth yet to be seen, he added.

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Monetary policy transmission across the eurozone is strong and bank lending shows further tightening, but it is too soon to consider rate cuts, Bank of Latvia head and ECB Governing Council member Martins Kazaks told an MNI event on Wednesday.

"Inflation is moderating from earlier peaks, reflecting the fading impact of previous upward shocks," Kazaks said, according to the text of prepared remarks. But the ECB still needs to watch out for domestic price pressures, with profit margins still to soften and a clear peak in wage growth yet to be seen, he added.

Keep reading...Show less