Holzmann (ECB): The ECB’s interest rate decrease in January is not self-evident

The reduction in January by the European Central Bank ( ) “is not at all given to me”, said ECB Governing Council member Robert Holzmann in an interview with Politico, repeating previous observations on the possible vote at next week’s meeting. “The reduction in interest rates when inflation increases faster than expected, even temporarily, involves the risk of damaging credibility,” says the ECB’s Holzmann. In the debate on interest rates he will enter with an open mind, he notes that decisions are based on data and that the latest inflation figures were well above 2% in December and will probably remain so in January as well. CORVERSE The changes from the December interest rate decision include the faster depletion of natural gas reserves and the termination of the transit of Russian gas from Ukraine to Europe, but also the risk that energy prices remain high. Depreciation of the euro against the dollar can ease the impact of American duties on the one hand, but boost import prices on the other Holzmann said he sees nothing to worry about so far in relation to financial stability or central bank policy from the perspective of a government led by the far-right Free Party in Austria. Please note that Holzmann was appointed to the position of central bank commander by the Free Party as part of the coalition agreement with conservatives, in 2017.