ECB's Holzmann on Interest Rates and Inflation

Robert Holzmann, a member of the European Central Bank (ECB) Governing Council, has expressed his support for halting interest rate cuts in April. He believes that monetary policy has reached a neutral stance. Holzmann shared his views in an interview with the Platow Brief, mentioning his abstention from the ECB's March decision due to its restrictive wording on monetary policy.

Global Political Impact on Inflation

Holzmann highlighted the potential impact of global political developments, such as U.S. tariffs and EU defense spending, on inflation. He pointed out that these factors introduce upside risks to the inflation outlook. "Emerging developments with unclear consequences could lead to rising inflation. In such scenarios, we would refrain from cutting interest rates and wait until summer for more clarity," Holzmann stated. He also mentioned that the ECB expects to have updated inflation and growth forecasts by June, providing a clearer direction for future monetary policy decisions.