ECB’s Holzmann: Data Don’t Point Towards a ‘Very Strong’ Cut in December

3 December 2024

ECB’s Holzmann: Data Don’t Point Towards a ‘Very Strong’ Cut in December
Robert Holzmann, governor of the Oesterreichische Nationalbank, and Pierre Wunsch, governor of the National Bank of Belgium, at the European Central Bank Governing Council meeting in Ljubljana on October 16, 2024. Photo by Andrej Hanžekovič/ECB.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Robert Holzmann said on Tuesday that the ECB’s interest rate move next week would be ‘moderate’.

In a video interview with Austrian daily Oberoesterreichische Nachrichten, Holzmann, who heads the Austrian National Bank, said that ‘the probability isn’t zero that there will be another rate cut — but it will be moderate, not very strong, the data so far don’t point toward that.’

Inflation was headed in the right direction, he said, but some upticks had been registered recently.

After acknowledging that the Eurozone was facing plenty of headwinds, Holzmann said that current geopolitics suggests that inflation pressures ‘are rather more likely than unlikely’.

‘This can be due to oil or other energy prices. It can be related to the administration of President Trump’, he added.

 

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