Central Banks
Holzmann Says 100 Basis-Point ECB Hike ‘Currently Too Much’
- Austrian official calls three-quarter-point rise ‘good guess’
- Policy makers weigh repeating September’s historic step
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A 100 basis-point increase in interest rates by the European Central Bank would be “currently too much,” according to Governing Council member Robert Holzmann, who favors a three-quarter-point step next month.
Speaking in Brussels, Holzmann said officials are ready to raise borrowing costs to levels that may hamper economic growth as they seek to tame unprecedented inflation. Elevated price gains are likely to persist for a while, he said, with analysts anticipating another record near 10% when September’s reading is published this week.