ECB rate cut ‘conceivable’ this month – Holzmann

European Central Bank (ECB) policymaker Robert Holzmann stated that a 25 basis point interest rate cut is “conceivable” at the ECB’s next meeting this month, but not more.

Investors expect the ECB to cut rates at every meeting through June, with the deposit rate projected to end 2025 at 1.75 per cent, a level seen as stimulating growth.

Holzmann, who heads the Austrian National Bank, noted that the final decision depends on upcoming data.

He also highlighted that US President-elect Donald Trump’s expected import tariffs could increase inflation in Europe by raising the prices of imported goods and prompting government spending to mitigate these effects.

Attribution: Reuters

Subediting: M. S. Salama