European Central Bank Committee Member Kazaks: Economic Downturn Needed for October Rate Cut

Gold Finance reported that Kazaks, a member of the Central Bank of Europe, said that in order to cut interest rates at the next meeting of the European Central Bank, the euro zone economy needs to decline. The possibility of a rate cut in October is not high if we look at the financial markets. However, if the economy is unexpectedly hit and feels significantly weaker than current expectations, and inflation also declines significantly, then of course we can consider a rate cut. Due to the high increase in service prices, inflation has not been completely defeated. However, the economic growth rate is lower than expected, which may be due to tight monetary policy. The decision to gradually start dropping interest rates is definitely reasonable. We have already taken two actions this year, and of course this year is not over yet.