ECB’s Kazaks Signals ⁣December Meeting as Crucial for Inflation‌ Outlook

FRANKFURT,‌ SEP 29 – A key decision point for the future of European monetary policy lies ahead in December, according to European Central Bank (ECB) official Martins Kazaks. Speaking to Reuters on Friday, Kazaks underscored the significance​ of the ECB’s December meeting in determining whether inflation will deviate from the central bank’s 2% ​target.

“Of course, December is significant as we will have a new set of projections and we will see if there is a deviation of 2% and how large and​ persistent it⁤ is indeed likely to be,” Kazaks stated.

The comments ⁢come after the ECB held interest​ rates steady on Thursday, signaling an optimistic outlook on both economic growth and inflation. this decision dampened expectations for an imminent cut in financing costs.

Kazaks also addressed the potential impact of a delay to ⁤the European Union’s new Emissions Trading System 2 (ETS2). He indicated that postponing the implementation of ETS2 – currently‌ factored into ECB forecasts for 2027 – would have a “quite considerable” downward effect on inflation.

the ECB ⁣will be ⁣closely monitoring these factors as it navigates the complex economic landscape and aims to maintain price stability⁤ across the Eurozone. The December meeting will provide a ‌critical opportunity to reassess the current trajectory and adjust policy accordingly.