The leader said that ECB should be careful when reducing interest
Oh European Central Bank Since there is an increase in defense costs and the highest US tariffs, your main interest rate should be taken care of at the April meeting, said Austria BC Governor Robert Holjman.
Two items threaten to handle Inflation in the euro zone 2% above the target
Although investors expect loan costs to fall, Holgman said Wall Street Journal It does not support new incision in the current situation.
“It is necessary to be careful when reducing the interest rate,” he said. He prefers a higher rate than most of his colleagues. He was the only one who did not support the cut at the meeting this month.
A. Euro Economy It has grown much slowly than the US in 2023 and 2024.
However, with High US tariffs Impairing growth in Europe.
The opportunities of the euro zone are now better from 2026, mostly due to a change in Germany, the largest member of the region.
Legislators recently approved a Civil and Defense Investment Package To increase the economy and reduce the US military dependence.
Holgman fears that if there is no increase in expenses and industrial capacity in other parts of Europe, it will press inflation.
“If inflation appears back, we will lose our credibility,” he warned.
Although most policy training is agreeing New US tariffs weaken growth in EuropeThe impact on inflation is still uncertain.
If European governments do not revenge, prices will cool. However, new European US imports increase prices for consumers.
Para Holzman, High tariffs represent inflation threat.
Oh Trump is the president He announced the increase in tariffs on April 2. Holzman pointed out that any answer should be “wisdom” and that it is politically aimed at financial loss.
“The US economy is going for a smooth landing. It is not distinctive after high inflation. But in a few months he has to destroy faith.”
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