In light of high inflation, European Central Bank Council member Robert Holzmann has spoken out again in favor of up to three rate hikes this year. “I think it would be appropriate to take at least two or even three steps. It could be smaller, 0.25 percentage point each. If that happens by December, it will have an effect in 2023 that the deposit rates of banks, which are Now less than 0.5 per cent, it will be in positive territory,” the head of the Oesterreichische Nationalbank (OeNB) told Salzburger Nachrichten. .
That is still far from the normal nominal interest rate. That would send a good signal to the audience, Holzman says. He told the newspaper that the ECB was not late, but may have acted earlier. On Wednesday, the US Federal Reserve responded to high inflation with the biggest jump in interest rates in 22 years, and it wants to follow suit with more increases.
On Friday, signals from the European Central Bank increased about an imminent shift in interest rates. “As is the case today, I assume we will be able to raise interest rates for the first time in July,” ECB Director Isabelle Schnabel told Bild. According to Bundesbank President Joachim Nagel, acceleration is needed. His French colleague Francois Villeroy de Gallo is also concerned about the recent record inflation rate of 7.5 per cent and sees monetary authorities surrounding European Central Bank President Christine Lagarde under pressure.