ECB‘s Holzmann: Interest Rates Should Not Be Cut in July

30 April 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – The European Central Bank should refrain from cutting key interest rates back-to-back in June and July, ECB Governing Council member Robert Holzmann said Tuesday.

In an interview with Platow Brief, Holzmann, who heads the Austrian National Bank, said, ‘I don’t see any reason why we should take two steps in a row’, as there would not be enough information in July to make a decision.

The ECB remains data-dependent, he said, adding that interest rates could possibly be cut one or two times this year if the current developments remained the same.

‘The more the data and our models suggest we are hitting our 2025 inflation target, the more rate cuts are appropriate’, Holzmann said.

‘The rise in prices for services remains high. Core inflation, adjusted for energy and food prices, has also remained higher. I also believe geopolitics is still a very dangerous factor’, he said.