In a statement today, ECB Governing Council member Peter Kazimir highlighted his preference delivering the first rate cut in June. Emphasizing the persistent nature of upside inflation risks, Kazimir pointed to factors such as workers’ pay, energy prices, fiscal policy, and the green transition as ongoing concerns that necessitate caution.
Kazimir’s stance is clear: “Rushing isn’t smart and beneficial,” he remarked, underlining the jeopardy to ECB’s credibility from a hasty policy adjustment.
According to him, “Only in June, with new forecast at hand, will the level of confidence reach the threshold.”
Also, he advocates for a “smooth and steady cycle of policy easing,” suggesting that the decision-making process should be grounded in comprehensive and up-to-date economic forecasts.
“Upside inflation risks are alive and kicking,” he asserted, emphasizing the need for vigilance. “The current picture clearly favors staying calm for the coming weeks and delivering the first-rate cut in summer,” he said. “The slowdown in inflation remains fragile — we can’t take it for granted.”
