Member of the Governing Council of the European Central Bank Kazacs (Governor of the Central Bank of Latvia). He was very frank about the policy backdrop, saying the bank should not allow inflation to stay above 2% until 2026.
European Central Bank forecasts indicate that the target inflation rate of 2% will only be achieved at the end of 2025. Kazakhs are clearly concerned about delays beyond that.
He said that although uncertainty remains high, his fellow policymakers are confident that the decline in inflation is continuing, allowing for a less restrictive policy approach. But this could change if upward price pressures become more stubborn:
- “Right now, I think we're still on track for 2% in the second half of 2025, and I really hope we get there by then,” he added.
- “We shouldn't drag this problem into 2026.”
- “If the data shows that reaching our target has been pushed beyond 2025, then of course the restriction level must be maintained for a longer period so that we can avoid this type of outcome.”
European Central Bank of Kazakhstan