Kazaks: ECB Should Continue to Gradually Lower Interest Rates

Forex - According to Martins Kazaks, a member of the ECB Governing Council and Governor of the Bank of Latvia, the European Central Bank should continue to gradually lower interest rates. Kazaks stated, "The current baseline scenario - and the one that seems most appropriate to me - is to continue to gradually lower interest rates. The direction of interest rates is downward, but of course, this depends on how the economy feels and what is happening in the economy." He also mentioned, "Tariffs will not be good for Europe, as we are an export and trade-based economy. What is this likely to mean for us? Inflation may be slightly higher, prices may rise due to tariffs, and the economy might weaken as it becomes harder for us to make sales."