ECB's Holzmann: 50 bps rate hike in July appropriate, inflation to remain above 2.0% in 2023/24

Joel Frank Independent Analyst

Hawkish leaning European Central Bank (ECB) Governing Council member Robert Holzmann said on Tuesday that a 50 bps rate hike in July would be appropriate and that ending the year with interest rates in positive territory is extremely important, reported Reuters. Euro-area inflation is set to remain above 2.0% in 2023 and 2024, he added, noting that the ECB's strict forward guidance on rates no longer makes sense.

His remarks come after ECB Governing Council member and Bank of France head Francois Villeroy de Galhau said that a 50 bps rate hike isn't in the consensus at the bank earlier in the day.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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