Latvian central bank governor, and therefore a Governing Council member of the European Central Bank, Martins Kazaks spoke on Friday with CNBC, ICYMI:

In brief, he said on Friday that interest rates may be close to their terminal level, though uncertainty remains high and further changes to the policy outlook are possible:

• “We are, by and large, within the baseline scenario” (the ECB inflation target is 2%)
• “And if the baseline scenario holds, then I think we are relatively close to the terminal rate already”
• “a couple of more cuts may be possible”

Kazaks said the outlook will depend on incoming data on developments in the economy

“The important thing is to see where the trade talk and the trade story take us, and then of course we’ll act”

Kazaks expreessed a similar view around three weeks ago:

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