Next ECB rate cut could be longer in coming, Holzmann says

Next ECB rate cut could be longer in coming, Holzmann says


Robert Holzmann, governor of Austria’s central bank.

Bloomberg | Bloomberg | Getty Images

The next interest rate cut by the European Central Bank could be longer in coming after a recent uptick in inflation, ECB Governing Council member Robert Holzmann was quoted as saying on Saturday.

“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,” Holzmann told Austrian paper Kurier.

Euro zone annual inflation accelerated in November to 2.2% from 2.0% a month earlier and above the ECB’s 2% target rate.

“Yes, there are signs of an upward trend in some energy prices. But there are also other scenarios as to how inflation could return, like via a stronger devaluation of the euro,” said Holzmann, who is the head of the Austrian central bank.

European Central Bank's tone is much too hawkish, economist says

Holzmann, who is widely regarded as a hawk on inflation, was also asked about the prospect of incoming U.S. President Donald Trump imposing trade tariffs, and how that could affect economic growth, price pressures and monetary policy.

“A likely scenario is that Trump’s tariffs lead to an overall slowdown in growth, but also create inflationary pressure. More so in the U.S. than with us,” Holzmann said.

“How strong the effect will be depends crucially on whether and how much the dollar appreciates and the euro depreciates.”



Source

Nexperia cuts wafer supplies to Chinese plant, ratcheting up chip disruptions
World

Nexperia cuts wafer supplies to Chinese plant, ratcheting up chip disruptions

The logo of Chinese-owned semiconductor company Nexperia is displayed at the chipmaker’s German facility, after the Dutch government seized control and auto industry bodies sounded the alarm over the possible impact on car production, in Hamburg, Germany, Oct. 23, 2025. Jonas Walzberg | Reuters Dutch chipmaker Nexperia has suspended supplies of wafers to its Chinese assembly plant, according to a letter addressed to its […]

Read More
Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts
World

Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts

Shoppers carry Macy’s and Nordstrom bags at Broadway Plaza in Walnut Creek, California, US, on Monday, Dec. 16, 2024. The Bureau of Economic Analysis is scheduled to release personal spending figures on December 20. David Paul Morris | Bloomberg | Getty Images While the impact so far this year has been muted, tariffs are expected […]

Read More
Stocks making the biggest moves midday: Amazon, Twilio, Reddit, Cloudflare, First Solar and more
World

Stocks making the biggest moves midday: Amazon, Twilio, Reddit, Cloudflare, First Solar and more

These are some of the stocks posting the largest moves midday. Source

Read More