ECB Governing Council: Will not rush to cut interest rates in June is more likely

The Zhitong Finance App learned that Peter Kazimir, a member of the ECB Management Committee and president of the Central Bank of Slovakia, said that the ECB will not rush to cut interest rates so as not to disrupt progress in inflation. He said that the ECB is more likely to cut interest rates in June than in April.

Peter Kazimir said, “In the absence of a clearer medium-term outlook, it is risky to act hastily based on short-term surprises. This could easily jeopardize the progress we have made in achieving our goals.”

The ECB kept interest rates unchanged for the third time in a row last week. Although ECB President Lagarde opposed aggressive financial markets' bets on early interest rate cuts, they fell short of expectations. Since then, statements by Eurozone policymakers suggest that their differences over the speed of ECB action are widening.

Peter Kazimir said, “I believe that the exact timing — whether April or June — is secondary to the impact of the decision.” “The latter scenario seems more likely to happen, but I wouldn't prematurely jump to conclusions about the timing. We don't hesitate to act as long as it is necessary.”

Peter Kazimir stressed that ECB officials will make decisions based on upcoming data and the ECB's economic forecast for March. He added that the wage agreement for the next few years is still an “unpredictable factor.” “Although the signs are good, we don't have enough information to make a confident conclusion,” he said. For this reason, it is still too early to discuss interest rate cuts. ”