ECB’s Holzmann: Might Need to Wait Longer for Next Rate Cut

28 December 2024

ECB’s Holzmann: Might Need to Wait Longer for Next Rate Cut
Robert Holzmann, governor of the Austrian National Bank, at the OeNB Chamber concert with members of the Vienna Philharmonic Orchestra in Frankfurt on December 11, 2024. Photo by Bernd Roselieb/ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Robert Holzmann said on Saturday that the ECB might be willing to consider waiting longer for the next rate cut, given inflation risks.

In an interview with Austrian daily Kurier, Holzmann, who heads the Austrian National Bank, said, ‘It could be the case that we take more time before lowering rates again.’

Energy prices were on the rise again, he said, but inflation could also register an uptick if the euro depreciated significantly.

If the US were to increase tariffs, growth could become more sluggish and inflation could face upward pressure, he said.

‘How strong the effect will be depends crucially on whether and to what extent the dollar appreciates and the euro weakens’, he said.

‘I don’t see rate increases at the moment’, said Holzmann when asked about the potential of rate hikes coming back.

 

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