ECB’s Holzmann decisively against quick and strong interest rate cuts

In an interview published today, ECB Governing Council member Robert Holzmann indicated that while he is open to rate cut in June, “I see absolutely no reason for us to cut key interest rates too quickly, too strongly,” he said.

Holzmann also acknowledged the significant influence of Fed on ECB decision-making. He described the Fed as “the gorilla in the room,” emphasizing how ECB policies are, to some extent, shaped by actions taken by the US central bank, particularly due to the dollar’s pivotal role in the global economy.