Interest rate hike from ECB's hawkish member: Not a guarantee

Robert Holzmann, one of the most hawkish members of the European Central Bank (ECB), stated that interest rate cuts in 2024 are not a 'guarantee'. ECB member Holzmann stated that it is too early to talk about reducing borrowing costs, saying, "Although the ECB has left behind an unprecedented 10 consecutive interest rate hikes, there is no guarantee of interest rate cuts in 2024." Stating that the normalization in monetary policy has had an impact on slowing inflation, Holzmann said, "However, it is still too early to think about interest rate cuts." The ECB did not change interest rates at the beginning of the month, thus leaving interest rates unchanged for 2 months in a row. President Christine Lagarde had signaled that inflation would rise in the coming months due to the base effect, and therefore it was premature for markets to expect an interest rate cut by March. Holzmann stated that inflation could reach the 2 percent target in 2 years, and that this path would be difficult.