ECB Signals Rate Cuts Ahead, Kazaks Says No Need For Stimulus Levels

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.