ECB's Holzmann: ECB should pause further interest rate cuts until at least September.
European Central Bank (ECB) policymaker Robert Holzmann said on Tuesday that “the ECB should pause further interest rate cuts until at least September.”
Additional quotes
We should keep out powder dry given the US-EU trade war.
No reason to lower rates in June and July.
Cutting further would be more risky than staying where we are now.
Further rate cut would likely have no effect on economic activity.
Economic activity held back by uncertainty rather than restrictive monetary policy.
Borrowing costs have come down so much over the past year that they are no longer slowing down economic activity and are potentially even stimulating growth.
A 'number of people' in the ECB Governing Council are also 'skeptical' about additional rate cuts.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
