Austrian National Bank governor and ECB Governing Council member Robert Holzmann spoke in an interview with the Kurier newspaper published on Saturday.
- “It could be the case that we take more time before lowering rates again,”
- “It’s true, some energy prices are trending upwards again. But there are also other scenarios for how inflation could return, such as a stronger depreciation of the euro.”
- “I don’t see rate increases at the moment.”
- “One probable scenario is that Trump’s tariffs lead to a slowdown in growth overall, but also create inflationary pressure,”
- “How strong the effect will be depends crucially on whether and to what extent the dollar appreciates and the euro weakens.”
Holzmann reported in a Bloomberg piece (Bloomberg is gated). I don't think he is on the right track. Growth pressures (the EU economy is not a basket case, but its on that glide path/cliff edge) are likely to prompt continuing cuts from the ECB and keep euro under pressure on rallies
ECB Holzmann
