ECB’s Holzmann: Rate cuts must wait for more tariff certainty

Pablo Piovano FXStreet

CNBC reported that European Central Bank (ECB) policymaker Robert Holzmann said that Eurozone interest rates should be held until more clarity emerges on the path of United States (US) tariffs and European Union (EU) countermeasures.

Key Quotes

Rate cuts must wait for more tariff certainty.
There was a “broad consensus” around lowering rates, but some disagreement at the margins.
It wasn’t clear yet to what extent [tariff] countermeasures were being taken.
There may be further cuts this year, but the number is still outstanding.
While various scenarios remained possible with regard to prices and movement of rates, for the time being direction was downward.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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