The European Central Bank (ECB) may commence lowering interest rates at the beginning of summer, as LTV programme Rīta panorāma was told by Bank of Latvia governor Mārtiņš Kazāks.
“The start of summer, I believe, is when it may start,” said Kazāks, stressing at the same time that the reduction of interest rates will be done cautiously, little by little to see how the economy responds, and people shouldn’t expect rates to come close to zero again.
He also said the lowering of interest rates is expected around June. “I don’t have any objections about this at this time. So I believe we may see the central bank start lowering rates around Jāņi,” said Kazāks.
The governor of the Bank of Latvia also stressed that uncertainty remains high. This is why it is necessary for people to be very careful to make sure inflation does not go up again.
It has already been reported that at its meeting on the 7th of March this year, the Council of ECB decided to keep interest rates unchanged for the fourth consecutive meeting, including the maintenance of the main refinancing operations rate at 4.5%, the deposit facility rate at 4% and the marginal lending facility rate at 4.75%.
Also read: Latvian authorities to continue looking into Daugavpils mayor’s private income
Follow us on Facebook and X!
European Central Bank may start lowering interest rates this summer
