December 29, 2024 at 09:32PM
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
This article was written by Eamonn Sheridan at www.forexlive.com.