Holzmann Stirs Debate Over ECB's Monetary Path
ECB policymaker Robert Holzmann expressed dissent over recent interest rate cuts, suggesting rates are in expansive territory. While ECB President Christine Lagarde hinted at nearing the monetary cycle's end, Holzmann voiced skepticism, urging further discussion on what constitutes a neutral rate, which he estimates at 3%.
- Country:
- Austria
In a surprising dissent, European Central Bank policymaker Robert Holzmann has voiced concerns over the recent interest rate cuts, labeling current rates as expansive. This stance opposes the majority decision taken by the ECB's Governing Council on Thursday.
At a recent news conference, Holzmann countered ECB President Christine Lagarde's assertion that the central bank is nearing the conclusion of its monetary cycle. He emphasized the need for a thorough discussion on whether this is truly the situation.
Holzmann believes the neutral rate, aligning with sustainable economic growth without fostering inflation, stands at approximately 3% in nominal terms. His comments highlight a significant internal debate within the ECB regarding future monetary policies.
(With inputs from agencies.)
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