European Central Bank (ECB) member Martins Kazaks hinted at further interest rate reductions in the coming months. Speaking on Latvian public television, the central bank chief expressed confidence in continued rate cuts, despite two reductions already implemented this year.

Last Thursday, the ECB lowered its key deposit rate by 0.25 percentage points, continuing the policy shift initiated in June. While ECB President Christine Lagarde remains cautious about future moves, Kazaks aligns with market expectations of rates reaching 2.5% by mid-2025, down from the current 3.5%.