Voices of cautious path rising in AMB

Robert Holzmann, a member of the Governing Council of the European Central Bank (ECB) and one of the bank’s most hawkish officials, said: “I can’t rule out the possibility, but I can’t say for sure that it will happen either.” Robert Holzmann, a member of the Governing Council of the European Central Bank (ECB) and president of the Austrian Central Bank, commented on whether the ECB will raise interest rates over the next three meetings following the recent turmoil in the banking system. Noting that the turmoil resulting from UBS Group AG’s takeover of Credit Suisse Group AG has led to a decrease in liquidity in the financial system, Holzmann said that this could put downward pressure on inflation. Stating that the ECB cannot rule out the possibility of raising interest rates during the next three meetings, Holzmann said, “I cannot say that an increase will definitely happen.” While ECB officials did not provide any guidance on the next step at the meeting held last week, President Christine Lagarde stated on Monday that there was an increase in uncertainties and that this situation would lead to data-driven work in interest rate decisions. ECB raised interest rates by 50 basis points at its last meeting The European Central Bank raised interest rates by 50 basis points in line with market expectations at its last meeting held on March 16. With this decision, the bank increased its main refinancing rate to 3.50 percent, its marginal funding facility to 3.75 percent and its overnight deposit rate to 3 percent. The decision text included the prediction that inflation would remain at very high levels for a long time. The text also stated that uncertainty requires a data-driven approach.