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    Home > Finance > ECB cannot lower rates too quickly, Holzmann says
    Finance

    ECB cannot lower rates too quickly, Holzmann says

    Published by Global Banking & Finance Review®

    Posted on January 14, 2025

    1 min read

    Last updated: January 27, 2026

    This image features Robert Holzmann speaking at a conference on central and Eastern Europe, addressing the European Central Bank's approach to interest rates and ongoing inflation challenges. It highlights the urgency of careful monetary policy in the current economic climate.
    Robert Holzmann discusses ECB's cautious rate decision amidst inflation concerns - Global Banking & Finance Review
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    Quick Summary

    ECB's Holzmann warns against rapid rate cuts due to high core inflation and energy issues. Future decisions will rely on upcoming data.

    ECB's Holzmann Cautious on Rapid Rate Cuts Amid Inflation

    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)

    Key Takeaways

    • •ECB cannot lower rates quickly due to high core inflation.
    • •Rate decisions will depend on future data.
    • •Core inflation remains closer to 3% than 2%.
    • •Energy challenges are a significant concern.
    • •Holzmann spoke at a central and Eastern Europe conference.

    Frequently Asked Questions about ECB cannot lower rates too quickly, Holzmann says

    1What is the main topic?

    The article discusses ECB's cautious approach to lowering interest rates due to high core inflation and energy challenges.

    2Why can't the ECB lower rates quickly?

    High core inflation and energy challenges prevent the ECB from rapidly reducing rates.

    3Who is Robert Holzmann?

    Robert Holzmann is a policymaker at the European Central Bank.

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