OENB-GOUVERNENER Robert Holzmann does not consider another interest rate reduction from the European Central Bank (ECB). Because the key interest rates no longer slowed down the economic growth in the euro area and the inflation of the ebb, as expected, said the Council member of the European Central Bank (ECB) of the Reuters news agency. “We assumed that inflation would go back,” he said.
- Read here: Price driver Services: E -inflation in March at 2.9 percent
“Since we are at a neutral level and inflation approaches the target value, there is no reason for accommodating monetary policy.” This means measures that heat up the economy. Key interest rates are considered neutral if you neither brake nor push the economy.
Holzmann warns for caution
Holzmann, who was the only one to have the decision to reduce interest at the March Station, warned as a caution: the economy did not have to be stimulated. The next interest decision by the ECB is on April 17th. On the financial market, the likelihood of around 80 percent is currently being assessed that the Euro-Federal Reserve will then reduce the key interest rate by a further 0.25 percentage points. It would be the seventh step down since the ECB was switched to an interest rate reduction course in June 2024. The deposit rate, the key interest rate in the euro area, would drop to 2.25 percent.
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Image: OÖN/Togay
Source: Nachrichten
