VIENNA (Reuters) – The European Central Financial institution might decrease its key rate of interest earlier than the U.S. Federal Reserve, ECB Governing Council member Robert Holzmann was quoted as saying on Saturday.
“Europe could cut interest rates before the U.S.,” Holzmann informed Austrian newspaper Kronen Zeitung, noting that the European economic system was rising extra slowly than its U.S. counterpart.
Holzmann, 75, who’s governor of the Austrian Nationwide Financial institution, additionally informed the paper that he wouldn’t search a second time period on the helm of the nation’s central financial institution. His time period is because of run till the tip of August 2025.
When fee cuts would come was at the moment beneath dialogue inside the ECB’s Governing Council, Holzmann mentioned.
“From today’s perspective, I’d say: interest rate cuts are likely to come. When will depend largely on what wage and price developments look like by June,” he added.
The decrease wage agreements in Europe have been, the extra scope there could be to scale back borrowing prices, Holzmann mentioned.