European Central Bank Governing Council member Robert Holzmann said interest rates will probably have to rise somewhat higher to get euro-area inflation back to target, according to Austria’s Die Presse.
(Bloomberg) — European Central Bank Governing Council member Robert Holzmann said interest rates will probably have to rise somewhat higher to get euro-area inflation back to target, according to Austria’s Die Presse.
“There’s still no great all-clear” on consumer prices, Holzmann, who also heads the Austrian central bank, told the newspaper in an interview published Friday. “My guess is that a little more should be added. But the data will decide.”
The comments come before a mid-September meeting when monetary policy officials are set to decide between pausing rate hikes or prolonging a historic tightening campaign. Earlier on Friday, Bundesbank bank chief Joachim Nagel said he’s also not convinced that inflation is under control.
The ECB lifted borrowing costs last month for a ninth time in about a year, seeking to bring inflation back to its 2% target.
“We see declines in headline inflation,” Holzmann said, but the core rate “is still very high.”
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