ECB's Kazaks Says Restrictive Policy May Be Appropriate

Bank of Latvia Governor Martins Kazaks stated that the ECB may need to maintain restrictive monetary policy as the eurozone economy closes its output gap. Speaking to Bloomberg in Dublin, Kazaks said that "wading into restrictive territory, in my view, would be appropriate" as the economy is forecasted to close the output gap next year. Kazaks is a member of the ECB Governing Council and was discussing the inflation effects from energy price shocks and the interest rate outlook.

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