2024-04-01 19:00:45
The economy would grow less quickly in Europe than in the USA. This also has an impact on interest rates.
According to its council member Robert Holzmann, the European Central Bank (ECB) may cut key interest rates before the US Federal Reserve. “Europe could lower interest rates earlier than the USA,” the governor of the Austrian National Bank (OeNB) told the “Kronen Zeitung” in an interview published on Saturday. “The economy is growing more slowly in Europe than in the USA. This could mean that price developments here will weaken more.”
The issue is currently being discussed in the ECB Council, said Holzmann. “From today’s perspective, I say: interest rate cuts are likely to come. When will depend largely on what wage and price developments look like until June.”
The lower the wage agreements, the lower the price developments. If the long-term inflation target comes within reach more quickly, interest rates could be lowered sooner.
No extension planned
The 75-year-old, whose term of office runs until the end of August 2025, says he does not intend to continue. “It was clear to me five years ago that it would be a six-year job for me and that I didn’t want to run for office again after that,” said the OeNB boss.
In view of the debate about cash payments, Holzmann said: “I consciously try to pay a lot in cash. For example in a small café, because it’s easier to tip.”