European Central Bank Governing Council member Martins Kazaks noted earlier today that inflation in the Eurozone is almost defeated while tension in the region's labour market remains high. However, he warned that uncertainty is still high, so some caution is still necessary.
The official also suggested that the decision to start reducing interest rates could come within the next few meetings if the euro area's economy roughly follows the ECB's forecasts.
In addition, Kazaks admitted that the risk of lowering interest rates too quickly and driving inflation rates up again and the risk of starting to decrease rates too late are now beginning to level out, so, in his view, there is no need to delay the rate reduction too much.