ECB’s Holzmann: ‘No Signs that Core Inflation is Reducing’

22 November 2022

By David Barwick – FRANKFURT (Econostream) – There is no indication that euro area core inflation is declining, according to European Central Bank Governing Council member Robert Holzmann said on Tuesday.

In an interview with the Financial Times, Holzmann, who heads the Austrian National Bank, said he expected merely a ‘flattening-out of growth, or a mild recession’, as opposed to a serious economic downturn in the region.

Holzmann repeated his intention to support a third 75bp rate hike at the December meeting, explaining that such a move ‘would give a strong signal about our determination’, according to the paper. ‘It would tell businesses and trade unions we are serious so don’t underestimate us, be careful.’

Still, he didn’t entirely dismiss supporting a smaller hike, depending on incoming information.