MADRID, 1 Jun. (EUROPA PRESS) –
The Governor of the Austrian National Bank and member of the Governing Council of the European Central Bank (ECB), Robert Holzmann, has called for a half percentage point rise in interest rates in response to the rise in inflation, which in May reached a new record for the eurozone of 8.1%.
In comments sent by email to Bloomberg, the Austrian central banker, considered one of the ‘hawks’ within the Governing Council of the ECB, pointed out that the absence of a decisive response to the rise in prices would threaten to allow the unpinning of inflation expectations, which would require stronger measures in the future.
“An increase of 50 basis points would send the necessary clear signal that the ECB is serious about fighting inflation,” said Holzmann, for whom a clear interest rate signal “would also help support the euro exchange rate.” The weak euro doesn’t help on the inflation front.”
The debate regarding the first rise in interest rates by the ECB thus seems to pass from when it will take place, since everything points to it being in July, to the intensity of the upward adjustment.
In this sense, the chief economist of the ECB, Philip Lane, recently indicated as a reference the possibility of undertaking a rise of 25 basis points in July and another equal in September, in line with the opinion of the president of the entity, Christine Lagarde.