ECB Governing Council member Robert Holzmann said he has yet to make a decision about the upcoming September meeting but pointedly did not rule out the possibility of an interest rate hike.
“We are not yet at the highest level; it could be that we do another hike or two,” Holzmann commented, offering a glimpse into his thoughts on the current stance of ECB monetary policy.
However, Holzmann also put forth a scenario that could lead to an earlier-than-expected easing of rates. “If we were to move this year to above 4% … and inflation comes down, then we could be able, perhaps, to change it already to lower rates in 2024. If that’s not the case, we’ll have to wait for 2025,” he said.
