Mārtiņš Kazāks, Governor of the Bank of Latvia, said that an extremely high degree of vigilance and prudence is essential in future monetary policy management, suggesting that 2027 inflation could significantly exceed 4%.
Bank of Latvia Governor Mārtiņš Kazāks said that it is essential to maintain an extremely high degree of vigilance and prudence in future policy management. He emphasized the need for a particularly cautious approach to policy implementation.
He said that the 2027 inflation rate could significantly exceed 4%, surpassing expectations. This suggested an outlook marked by concern over future price trends.
He expressed the view that there is no need whatsoever for the ECB to slow or end the pace of reducing its asset holdings, suggesting an intention to maintain a tightening stance in monetary policy.
His remarks were reported as reaffirming the view that monetary policy still needs a certain hawkish edge.