Reported 12 months ago
European Central Bank Governing Council member Robert Holzmann cautioned that the persistence of inflation is being underestimated, emphasizing the risks of moving too early or too late in monetary policy decisions. Holzmann, who dissented against the ECB’s June interest-rate cut, highlighted the importance of aligning policy actions with economic data signals and the potential negative effects of premature rate adjustments. He also discussed the impact of diverging with the US Federal Reserve on exchange rates and inflation rates. Holzmann shared these insights during a discussion on monetary policy at the Catholic University of Chile during his visit to Santiago.
Source: YAHOO