ECB's Kazaks says interest rates are 'relatively close' to target level

This is CNBC's live blog covering European financial markets.

The European Central Bank's interest rates are "relatively close to the terminal rate" if inflation stays within range, Governing Council member Martins Kazaks told CNBC.

The view is similar to that expressed by fellow ECB board member Isabel Schnabel last week, who said: "The appropriate course of action is to keep rates close to where they are today – that is, firmly in neutral territory."

Goldman Sachs expects two rate cuts this year, while JPMorgan sees one.

— Ganesh Rao

The European Central Bank's interest rates are "relatively close to the terminal rate" if inflation stays within range, Governing Council member Martins Kazaks told CNBC's Silvia Amaro on Europe Early Edition.

"Currently, if one takes a look at the dynamics of inflation, we are by and large within the baseline scenario and if the baseline scenario holds, then I think we are relatively close to the terminal rate already," said Kazaks, who is also the Latvian central bank governor.

The terminal rate is the point at which interest rates do not act as headwinds for economic growth, and are consistent with allowing the central bank to achieve its inflation target.

The ECB's key interest rate (the deposit facility rate) currently stands at 2.25% after the central bank's governing council voted unanimously to reduce it by 25 basis points in April.

Kazaks also said that the market's expectation of a 25 basis point cut at the next ECB policy meeting on June 5 is "relatively appropriate, in my view."

— Ganesh Rao

Friday will be a quieter day on the corporate earnings front, but investors can still expect a handful of reports out of European firms.

Richemont, Land Securities, Swiss Re and Thales are updating investors on their finances.

— Chloe Taylor