European Central Bank will consider economic situation when deciding on rates -Holzmann
(Reuters) – The European Central Financial institution will contemplate the financial state of affairs earlier than deciding whether or not to press forward with one other massive rate of interest hike in September, policymaker and financial hawk Robert Holzmann stated on Sunday.
The ECB was balancing its want to sort out increased inflation with a worsening financial state of affairs due to issues just like the Ukraine battle, Holzmann informed Austrian broadcaster ORF.
“The financial system will develop much less strongly, the forecasts level on this path, that has made us considerably cautious,” stated Holzmann, who heads the Austrian Nationwide Financial institution. “We’ll see within the autumn what the financial state of affairs is. Then we are able to most likely determine if we do one other 0.5% or much less.”
The ECB was additionally eager to forestall expectations of upper inflation turning into entrenched among the many common public, he added.
The ECB raised its benchmark deposit charge by 50 foundation factors to zero p.c on Thursday, its first hike in 11 years because it joined international friends in jacking up borrowing prices.
(Reporting by John Revill; Enhancing by Leslie Adler)
