Holzmann Calls For Half-Point Hike to Show ECB’s Resolve in Inflation Fight
- ‘Everything else risks being seen as soft,’ Austrian says
- Reaching positive rates at year end is crucial, he reckons
WATCH: ECB Governing Council member and Banque De France Governor Villeroy says “a 50 basis-point hike is not part of the consensus at this point.”
Source: BloombergThis article is for subscribers only.
The European Central Bank should consider kicking off its interest-rate hiking cycle with a half-point increase to convince people that it’s serious about fighting inflation, according to Governing Council member Robert Holzmann.
A step of 50 basis points would be “appropriate” in July, the Austrian governor said in an interview in Vienna on Tuesday, contrasting with ECB President Christine Lagarde’s more cautious approach in a blog post the previous day suggesting a quarter-point move.