Austrian ECB Governing Council member Robert Holzmann indicated in an interview with Austria’s Oberösterreichische Nachrichten newspaper that a rate cut at next week’s meeting is possible, but ruled out a significant reduction.
He stated that while the likelihood of a reduction “isn’t zero,” the cut would be “moderate, not very strong,” as current data do not strongly support such a move.
Holzmann mentioned that a 25bps cut is “conceivable,” but emphasized “not more” than that. Though, no decision has been made and it will depend on the “final data we receive.”
He acknowledged that inflation developments have been moving in the “right direction,” but recent “deviations to the upside” have emerged.
Additionally, he expressed concern over a “row of challenges” facing the economy, highlighting that the geopolitical environment suggests price increases are “more likely than unlikely.” Contributing factors include rising oil and energy prices and potential impacts from policies under President-elect Donald Trump.
