European Central Bank Governing Council member Martins Kazaks stated in a media interview that there is currently no urgent need to raise interest rates, as existing economic data does not yet support such a move. The current benchmark interest rate stands at 2%. Kazaks said, "We still have sufficient time to gather data and assess the direction of future policy." He noted that inflation expectations are generally under control, and so far, the ripple effects of rising energy prices on other sectors of the economy have been relatively limited. He added that international oil prices have retreated from their peaks following the Middle East conflict, and European natural gas prices remain well below 2022 levels. Kazaks stated that the current interest rate level is appropriate—neither stimulating economic growth nor restraining it.
Comments