ECB’s Kazaks: Warned that upside inflation risks remain intact
FXStreet
Last updated: June 15, 2026
Martins Kazaks, a Governing Council member of the European Central Bank (ECB), indicated readiness to raise interest rates and highlighted ongoing upside risks to inflation. The ECB's primary role is to maintain price stability in the Eurozone by managing monetary policy and setting interest rates, with a target inflation rate of around 2%.
- The ECB's primary tool is adjusting interest rates, with higher rates generally strengthening the Euro and lower rates weakening it. Monetary policy decisions are made by the ECB Governing Council, comprising heads of Eurozone national banks and permanent members.
- In extreme economic conditions, the ECB can implement Quantitative Easing (QE), a process of printing Euros to purchase assets, which typically weakens the Euro. QE has been used during financial crises and periods of low inflation.
- Quantitative Tightening (QT) is the reverse of QE, involving the cessation of bond purchases and reinvestments. QT is generally considered positive for the Euro as it signals economic recovery and rising inflation.
