European Central Bank Governing Council member Martins Kazaks cautioned in an interview with Latvia’s TV3 on Monday that inflation has a tendency to return and stressed that the ECB must ensure that inflation doesn’t come back.
The official noted that the financial markets at the moment are pricing in one to two more rate cuts this year but highlighted that the ECB's future rate decisions will depend on how the economy and inflation will develop.
Kazaks also admitted that the good news is that the ECB is starting to climb down from the rate peak.