Central Banks

Holzmann Sees Case for ECB Rate Hike If No Surprises Turn Up

  • Austrian governor downplays risk of a recession in interview
  • ‘We’re not yet in the clear’ on inflation, Holzmann says

Robert Holzmann

Photographer: Roni Rekomaa/Bloomberg
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The European Central Bank hasn’t defeated inflation and probably needs to raise interest rates again in September, according to Governing Council member Robert Holzmann.

Chiming in with hawkish colleagues who are also pushing for another hike in borrowing costs, the Austrian governor said in an interview that the economy isn’t in danger of a recession, and tight labor markets mean labor unions may clinch large wage increases.