ECB’s Holzmann: Tariffs Have So Far Had a Deflationary Impact

25 April 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Robert Holzmann said on Friday that US tariffs had so far been disinflationary in the euro area.

In an interview with Bloomberg, Holzmann, who heads the Austrian National Bank, said that he did not know where the ECB would stop its easing cycle, but that he agreed with ECB President Christine Lagarde ‘that so far, the net impact from the US tariff announcements seems to be rather deflationary than inflationary.’

The ECB’s decision in the June meeting was ‘completely open’, according to Holzmann.

‘The uncertainty created by the US will persist beyond the 90-day period’, he said. ‘There will be scars in the economy, even if tariffs are lowered again.’

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