(Finance) – “We are largely on the baseline of our projections and this is consistent with a gradual decline in interest rates“. He said it Martins Kazakhspresident of the Central Bank of Latvia and member of the Governing Council of the ECB, in an interview with Reuters on the sidelines of the Federal Reserve’s annual conference in Jackson Hole.
“Our June projections assumed two more rate cuts this year and at the moment I see no reason why we shouldn’t proceed“, he said, adding that he would only form an opinion on September after the August inflation data was released and after seeing the ECB’s new projections.
“Our projections have already assumed relatively rapid wage growth and this week we had numbers showing a easing of these wage pressuresso this also supports a path of gradual easing – he explained – Corporate profit margins are also decreasing”.
“Given the data we have at the moment, I would be very open to a discussion on another cut of rates in September,” he said in another interview with Bloomberg.
“But we’ll see: we still have to see the new forecasts, we still have to see the August inflation data – he added – Overall, I would say that even if inflation continues to move sideways in the coming months, this is consistent with further rate cuts.”
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