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ECB’s Kazaks: The direction of interest rates is clearly down

European Central Bank (ECB) policymaker Martins Kazaks said on Friday that “the direction of interest rates is clearly down.”

Additional quotes

A significant reduction in rates is still necessary.

Neutral rate is closer to 2% than 3%.

It's right to go step by step on rates.

A bigger rate cut is possible if required.

Market reaction

At the time of writing, EUR/USD is trading modestly flat on the day near 1.0470.

 

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