ECB’s Holzmann: Rate cuts must wait for more tariff certainty

CNBC reported that European Central Bank (ECB) policymaker Robert Holzmann said that Eurozone interest rates should be held until more clarity emerges on the path of United States (US) tariffs and European Union (EU) countermeasures.

Key Quotes

• Rate cuts must wait for more tariff certainty.
• There was a “broad consensus” around lowering rates, but some disagreement at the margins.
• It wasn’t clear yet to what extent [tariff] countermeasures were being taken.
• There may be further cuts this year, but the number is still outstanding.
• While various scenarios remained possible with regard to prices and movement of rates, for the time being direction was downward.