Banking
No reason not to cut rates in Dec as of now, ECB’s Holzmann tells paper
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VIENNA (Reuters) – As things currently stand, there is no reason for the European Central Bank not to cut
VIENNA (Reuters) – As things currently stand, there is no reason for the European Central Bank not to cut interest rates in December but the decision will be based on the data available then, ECB policymaker Robert Holzmann said in remarks published on Sunday.
Last month the ECB cut interest rates for the third time this year and four sources close to the decision told Reuters a fourth cut was likely in December unless data turned around in the coming weeks.
As things look at the moment, it is possible (that there will be a cut in December). There is nothing at the moment that would argue against that but that does not mean it will automatically happen,” Holzmann, who heads the Austrian National Bank, said in an interview with the Kleine Zeitung newspaper.
“We do not have the latest forecasts and data. We will receive those in December. We will decide on that basis, yes or no,” he said.
Holzmann said last month a week after the latest rate cut that a cut of 25 basis points was possible in December while at the same time repeating that it would depend on the economic data available at the time.
(Reporting by Francois Murphy; Editing by Susan Fenton)
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives.
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