There is no need to reduce the interest rate of the European Central Bank (ECB) For the time being, stresses Martin Kazaks, a member of the ECB’s Board of Directors.
“At the moment, inflation is around 2% and economic growth is, I would say, weak,” the ECB official said today (16.9.2025). “At the moment, there is no reason to reduce interest rates.”
He spoke after the ECB’s decision last week to maintain lending rates for a second consecutive meeting, with most policy -making managers stating that they do not see the need for further interest rates reductions – but maintaining the option to do so if needed.
“Given that the global financial situation, especially geopolitical, is very uncertain and there are still various risks, the central bank is carefully monitored the situation in the economy and will make the necessary decisions,” Kazaks said.
Finally, he pointed out that “taking into account this uncertainty and if the economy is weakened, if inflation begins to fall significantly below its 2%target, then the ECB could also reduce interest rates”.