Interest rate message from the hawkish name of the ECB

European Central Bank Governing Council Member Robert Holzmann said he saw no reason to cut interest rates quickly. Holzmann also stated that the Fed could have some influence on the decisions they will make, and Holzmann, one of the hawkish names of the ECB, warned against making hasty interest rate decisions in an interview. Holzmann, who is also the President of the Austrian Central Bank, said there was no reason to increase interest rates quickly, saying, “If the first step is taken in June, more will follow. However, I do not see any reason for a very rapid and strong interest rate cut.” The ECB is expected to raise interest rates by 25 basis points at its meeting on June 6. With this decision, the bank will depart from the Fed in terms of interest rate path. The Fed is not expected to change interest rates for a while. Holzmann also stated that his decisions could be influenced by the Fed to some extent. Holzmann also stated that they will reach the inflation target by mid-2025. Pierre Wunsch, ECB Executive Board Member and Belgian Central Bank President, said in his speech in Frankfurt that there was room for a 50 basis point interest rate cut, and that the timing would be determined by future data.