ECB rate cut could face delays – Holzmann

European Central Bank (ECB) Governing Council member Robert Holzmann signalled on Saturday that the next interest rate cut might be delayed due to an uptick in inflation.

Speaking to Austria’s Kurier newspaper, Holzmann said, “I don’t see any interest rate hikes at the moment. What could happen, though, is that one takes more time until the next interest rate cut.”

Euro area’s inflation rose to 2.2 per cent in November, above the ECB’s 2 per cent target, driven in part by rising energy prices. Holzmann also noted that currency devaluation could further fuel inflation pressures.

On the global front, Holzmann highlighted the potential impact of incoming US President Donald Trump’s trade tariffs, which he said could slow growth while increasing inflation, particularly in the US.

Holzmann, known for his hawkish stance on inflation, emphasised that the strength of the euro and dollar will play a critical role in shaping the economic and monetary outlook.

Attribution: Reuters

Subediting: Y.Yasser