The European Central Bank should pause further interest rate cuts until at least September, one of its most hawkish policymakers has said, warning that “we should keep our powder dry” given the simmering EU-US trade war.
Austrian central bank governor Robert Holzmann told the Financial Times he saw “no reason” for the ECB to lower rates at its June and July meetings.
“Moving [interest rates] further south would be more risky than staying where we are and waiting until September,” Holzmann said, arguing that a further rate cut at this stage was likely to have “no effect” on economic activity in the Eurozone.
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