ZURICH:The European Central Bank’s (ECB) next interest rate cut may take longer due to a recent rise in inflation, according to ECB Governing Council member Robert Holzmann. In an interview with Austrian newspaper Kurier, Holzmann stated, “I don’t see any interest rate hikes at the moment, but the next rate cut could be delayed.”
Euro zone inflation rose to 2.2% in November from 2% the previous month, exceeding the ECB’s 2% target. Holzmann pointed to potential inflationary pressures from factors like rising energy prices and a possible devaluation of the euro.
He also mentioned that tariffs imposed by former President Trump could lead to slower economic growth while creating inflationary pressures, particularly in the US rather than Europe.
