ECB/Kazaks: Interest Rates Should Be Cut Next Month

Forex - According to Martins Kazaks, a member of the ECB Governing Council and President of the Bank of Latvia, the European Central Bank should lower interest rates next month. Kazaks stated, "Of course, there will be a discussion, but my belief is that given what is happening in the European economy right now, another rate cut should occur in December." The ECB has already reduced interest rates three times and is expected to do so again next month. Markets are betting that this move could be a larger reduction of half a percentage point after weak PMI data released on Friday unexpectedly showed a contraction in the Eurozone’s private sector economy. Nevertheless, data expected to be released this week is anticipated to show an increase in inflation above the ECB's 2% target for November.