Central Banks
ECB Must Keep Restrictive Policy on Price Risks, Holzmann Says
- Return to 2% inflation isn’t yet guaranteed, Austrian says
- Interest-rate cut in December is likely but not a done deal
Robert Holzmann
Photographer: Jason Alden/BloombergEuropean Central Bank monetary policy must remain restrictive given lingering inflation risks, according to Governing Council member Robert Holzmann.
With wage gains in parts of the region still too strong and geopolitics posing threats to price stability, a return of inflation to the 2% target isn’t fully assured, the Austrian official said Thursday in an interview in Vienna. Similarly, while an interest-rate cut in December is the most likely outcome, it isn’t certain, he said.