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

Clouds hang over the European Central Bank (ECB) building on September 14, 2023, ahead of the meeting of the governing council of the ECB in Frankfurt am Main, western Germany. (Photo by Kirill KUDRYAVTSEV / Agence France-Presse

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.

READ: Lagarde says ECB will continue to cut interest rates

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.