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.
Holzmann, who was the sole dissenter from the governing council’s decision to cut interest rates in June, backed Thursday’s quarter-point cut, which left the benchmark deposit rate at 3.5 per cent.
“Monetary policy is now on a good trajectory,” Holzmann told the Financial Times. “We have started to be on an [easing] path, and headline inflation has continued to fall.”
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