The European Central Bank is poised to lower interest rates further but likely won't push them to stimulate economic expansion, according to Governing Council member Martins Kazaks. He emphasized inflation is not set to drop below 2%, allowing gradual rate cuts toward a "neutral" level where growth is neither restricted nor boosted. Some ECB officials advocate for deeper cuts, while others warn of diminishing policy returns. Kazaks also flagged risks from geopolitical conflicts and trade tensions.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02The European Central Bank is poised to lower interest rates further,
00:06but likely won't push them to stimulate economic expansion.
00:10This is according to governing council member Martin Kazaks.
00:13He emphasized inflation is not set to drop below two percent,
00:18allowing gradual rate cuts towards a neutral
00:21level where growth is neither restricted nor boosted.
00:24Some ECB officials advocate for deeper cuts,
00:27while others warn of diminishing policy returns.
00:30Kazaks also flagged risks from geopolitical conflicts and trade tensions.