Austria’s central bank governor Robert Holzmann says Eurozone borrowing costs could fall to 2.5% by mid-2025
Robert Holzmann, Austria’s central bank governor and a European Central Bank hawk, has said he thinks rate setters will need to lower borrowing costs again before the end of the year. Photograph: Michaela Nagyidaiova/Bloomberg hawk, has said he thinks rate setters will need to lower borrowing costs again before the end of the year.
There could be “room” for another quarter-point cut “in December”, barring shocks such as a rise in energy prices. He added that borrowing costs could be eased further to about 2.5 per cent by mid-2025.Winter is coming at a cost but there are ways to saveECB cuts interest rates for second time as inflation continues to slow
“I am not per se against lowering rates, I only object when the timing does not look right,” said Mr Holzmann. In its updated projections on Thursday, the ECB forecast inflation would increase “somewhat” between October and December and then fall to 2.2 per cent in 2025 and 1.9 per cent in 2026.
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