European Central Bank (ECB) Governing Council member Robert Holzmann has suggested that a December interest rate cut is possible, though not guaranteed. In an interview with Kleine Zeitung, Holzmann said, “As things currently stand, the possibility exists; there’s nothing at the moment that would speak against it, but that doesn’t mean it will automatically happen.”
This statement comes after the ECB reduced borrowing costs three times since June, with markets widely expecting another rate cut next month. Holzmann, known for his more conservative, “hawkish” stance on monetary policy, was the sole council member to oppose the ECB’s initial rate reduction in this series.
Holzmann also addressed concerns over global trade following former U.S. President Donald Trump’s recent election victory. He warned that Trump may push for significant tariffs, particularly targeting China, but also affecting Europe to a lesser extent. Holzmann highlighted that increased trade barriers could lead to economic bloc formation, which would likely harm global trade. He emphasized that such developments would impact export-driven economies like Austria, which relies heavily on open markets.
“Austria, as a small export nation, benefits greatly from world trade,” Holzmann noted, expressing concern over how bloc-driven trade could disrupt Austria’s economy and the broader European market.