ECB Governing Council member Robert Holzmann has called for a halt to further monetary easing until autumn, arguing that the eurozone should keep its current interest rate on hold to safeguard against resurgent inflation. The hawkish policymaker said that patience is prudent, as the Consumer Price Index is now at the 2% target. Premature easing could undo the regulator’s progress if such pressures reemerge.
Speaking live with Austria’s broadcaster ORF, Holzmann noted that the ECB maintains absolute dependence on economic dataflows for monetary decisions. Any significant GDP slowdown would prompt immediate dovish action on the regulator’s side, he commented.
In its latest policy move, the Governing Council implemented the widely anticipated 25-basis-point cut, bringing the key deposit rate down to 2%. The decision comes as Christine Lagarde indicated the eurozone's monetary easing cycle is entering its final stages, marking a pivotal shift in post-pandemic inflation management.