The European Central Bank's Governing Council member Martins Kazaks said on Monday that he thinks there is every possibility that the ECB's policymakers will move to a lower - a 25-basis-point - step already at the ECB Council meeting in May. However, he added that a 50 basis point increase is not an option that can be ignored. According to the official, it’s only natural that the step size is reduced at some point.
Also, Kazaks noted that the euro zone's economy is still resilient, and there will probably not be a recession in the region this year, the labor market remains strong, and the pressure on wages is still very high and, in some cases, even increasing. "Therefore, in my opinion, a further increase in rates is necessary,” he added.