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Kazaks Says Market Bets of 1-2 ECB Cuts Consistent With Baseline

(Bloomberg) -- Expectations that the European Central Bank will cut interest rates one or two more times this year seem “quite reasonable,” Governing Council member Martins Kazaks told CNBC in an interview.

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Policymakers should take time to assess euro-area inflation data as it arrives, Kazaks said, adding that price pressures are expected to move sideways in the coming months.

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He argued that the ECB won’t keep rates high for unnecessarily long, but also said that he wouldn’t like to see any further delays in reaching the 2% target.

Kazaks also said he sees “no reason” to activate a bond-buying backstop to address the latest market rout in France.

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