ECB's Kazāks: Ready to Act on Inflation if Needed

European Central Bank (ECB) Governing Council member Mārtiņš Kazāks has stated that the central bank is prepared to take action if necessary to bring inflation down to its target of 2%. Speaking during the European trading session, Kazāks emphasized that the ECB will decide on a course of action in September based on data.

Kazāks also acknowledged the pros and cons of further interest rate hikes. He noted that forward guidance can be counterproductive amid uncertainty, and highlighted that wage growth is gradually slowing down. However, he also pointed out that inflation expectations are still anchored near target.