Austrian Central Bank Governor Predicts Further Interest Rate Increases
Austrian central bank Governor Robert Holzmann recently stated that the European Central Bank (ECB) may implement one or two more interest rate increases if unexpected challenges arise in the economy. Speaking from the International Monetary Fund’s World Bank Forum in Marrakesh, Holzmann told ‘s Joumanna Bercetche that while the current hiking cycle may end if everything goes well, additional shocks could require further rate hikes.
In September, the ECB decided to raise interest rates to a record level, marking the 10th consecutive increase in almost two years. This move was aimed at combating inflation, with the main deposit facility now at 4% for the bloc. Earlier in the same day, Holzmann’s French counterpart, Francois Villeroy de Galhau, identified inflation as a major concern and predicted that it would reach around 2% by 2025. Villeroy de Galhau also mentioned a clear downward trend in prices during an interview with franceinfo.
