Finance
ECB cannot lower rates too quickly, Holzmann says
Published by Global Banking and Finance Review
Posted on January 14, 2025
1 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 14, 2025
1 min readLast updated: January 27, 2026
ECB's Holzmann warns against rapid rate cuts due to high core inflation and energy issues. Future decisions will rely on upcoming data.
VIENNA (Reuters) - The European Central Bank cannot lower rates too quickly given issues including stubbornly high core inflation, policymaker Robert Holzmann said on Tuesday, while maintaining that the next rate decision would depend on data available then.
"I don't think we can go down as straight as it is. In particular as more recently we had some hiccups with regards to inflation and core inflation is still, how to say, closer to 3% than to 2% there. We have a lot of challenges now with regard to energy," he told a conference on central and Eastern Europe.
(Reporting by Francois Murphy; Editing by Alison Williams)
The article discusses ECB's cautious approach to lowering interest rates due to high core inflation and energy challenges.
High core inflation and energy challenges prevent the ECB from rapidly reducing rates.
Robert Holzmann is a policymaker at the European Central Bank.
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