Interest statement from ECB official Holzmann

European Central Bank (ECB) Board Member Robert Holzmann stated that only the slowdown in core inflation will change the bank’s decision to increase interest rates.

Holzmann, who is also the Head of the Austrian Central Bank, said in a speech he gave in Austria today that the peak in headline inflation may have been seen. Stating that they should follow this development closely, Holzmann said, “There is no random sign that inflation expectations are out of control. However, as core inflation rises, the slowdown in headline inflation will not turn us from our path.”

For example, ECB Executive Council Member Isabel Schnabel said yesterday that despite the limited slowdown in inflation, borrowing costs should increase even more.

The moderate weather conditions in the region, reducing natural gas prices, provided some relief to European households. With the development, Goldman Sachs announced that it no longer expects a calm in the Eurozone this year.

Holzmann also stated that it is too early to talk about the final interest rate due to risks and high uncertainties.

Also speaking today, Member of the Board of Directors Francois Villeroy de Galhau gave the message that interest rate increases will continue for the next few months and that the last interest rate can be reached in the summer.