Another European Central Bank member has indicated that a large reduction in interest rates is being considered.

• At the central bank's December meeting, a 50-basis-point rate cut should be considered, as suggested by ECB's Mārtiņš Kazāks and his colleague Mario Centeno.
• At its October meeting, the ECB made history by delivering back-to-back interest rate cuts for the first time in 13 years.
• The day after Portuguese central bank chief Mario Centeno made similar comments, it was reported that the European Union is considering imposing sanctions on Hungary over its controversial new law on higher education.

On Thursday, Mārtiņš Kazāks, the governor of the Bank of Latvia and a member of the European Central Bank's Governing Council, expressed his thoughts on the possibility of a jumbo half-point interest rate cut for December.

At the next ECB meeting, he stated that "everything should be considered" when asked for his views on a 50-basis rate cut.

He informed CNBC's Karen Tso at the IMF's annual meetings in Washington, D.C. on Thursday that we would discuss the matter in December.

The central banker, who is not typically associated with dovish views, stated that we will have the discussion early next year and that we will approach the 2% inflation target through meeting to meeting.

After the ECB delivered a back-to-back interest rate cut for the first time in 13 years at its October meeting, and a day after Portuguese central bank chief Mario Centeno made similar comments, his comments were made.

Centeno, a dovish member of the ECB Governing Council, stated on CNBC Wednesday that the print of inflation in September was very low, much lower than expected.

"Centeno stated that we should incorporate the recent inflation reading into our story. Following that, we must examine the incoming data, the trend in the data we have been monitoring, and it is possible that a 50 basis point increase may occur because we remain data-dependent and the data we are receiving suggests this direction."

Markets had already factored in the ECB's third quarter-point rate cut this year, as indicated by decision-makers, due to lower inflation risks and a weaker growth forecast.

Kazāks emphasized that the bank remains in a restrictive area.

To ease the pressure on rates, we would need to do so, as this is what we would do. However, we need to see the data first, he added.

The inflation rate in the euro zone was recently revised to 1.7% in September, which is lower than the earlier official estimate of 1.8%, and higher than the print of 2.2% in August.

Since June 2021, the euro zone's inflation rate has not fallen below the ECB's 2% target until September 2021, signaling the end of years of high price growth and increasing the likelihood of near-term rate cuts.