The European Central Bank‘s (ECB) Governing Council member, Robert Holzmann, indicated on Saturday that the next interest rate reduction could be delayed, following a recent increase in inflation, according to Reuters.
Holzmann remarked, “It could be the case that we take more time before lowering rates again,” acknowledging that while some energy prices have risen, other factors could also drive inflation, such as a potential depreciation of the euro.
He clarified that, at present, he does not foresee any rate hikes. “I don’t see rate increases at the moment,” he stated.
He also highlighted potential risks to growth, including the impact of tariffs, particularly from the U.S., which could slow global growth while simultaneously increasing inflationary pressures. The extent of these effects, he noted, would depend largely on the strength of the dollar and the potential weakening of the euro.
As of the latest market update, the EUR/USD exchange rate saw a slight increase of 0.03%, trading at 1.0428.
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