ECB’s Holzmann: September Rate Cut Not a ‘Foregone Conclusion’

24 August 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Robert Holzmann on Friday said that an interest rate cut in September was not a done deal.

In an interview with Bloomberg Television at Jackson Hole, Holzmann, who heads the Austrian National Bank, said, ‘So I wouldn’t say it [an interest rate cut in September] is a foregone conclusion — definitely some of my colleagues are thinking this.’

It was important to look at the incoming data carefully, he said, as there were still ‘a number of data coming in.’

‘I hope we can do it, I am not against cutting, only I am afraid that I don’t want to cut too early’, he said.

There was a widespread impression that the fight against inflation was won, he said, but the situation still called for caution.

‘To a large extent it probably is [won], but definitely there are some areas where inflation is still lingering, and these are the ones that can become dangerous’, he said.

The Governing Council would look at the United States Federal Reserve’s moves while taking into consideration the differences between the inflation drivers in the two economies, he said.

‘A decision will also be influenced by what the Fed is doing,’ he said.