ECB Rate Cut Delay Suggested by Holzmann

Robert Holzmann, a member of the European Central Bank (ECB) Governing Council, indicated that the next interest rate cut may take longer due to a recent rise in inflation, which reached 2.2% in November, slightly above the ECB's target. He mentioned that while energy prices are increasing, inflation could also be influenced by factors such as the depreciation of the euro. Holzmann ruled out any immediate interest rate hikes but suggested a more cautious approach to future cuts. He also highlighted potential inflationary pressures stemming from U.S. tariffs under President Trump, which might slow growth and impact inflation differently in the U.S. compared to Europe. The overall economic effects will depend significantly on currency fluctuations between the dollar and the euro.