European Central Bank (ECB) policymaker Robert Holzmann said in a Reuters interview on Wednesday, “I have no in-principle objection to a June rate cut but want to see more supportive data.” Additional quotes Cutting rates out of sync with the Fed would diminish impact of policy easing. Given weak productivity in Eurozone, 3.0% deposit rate may still prove too tight over longer term. It’s possible that inflation may even do better than ECB projections.
ECB needs to stop subsidizing commercial banks and should cut interest payments on the piles of cash lenders got from the central bank on the cheap. Market reaction At the time of writing, EUR/USD is adding 0.08% on the day to trade at 1.0776, little affected by the above comments. ECB FAQs What is the ECB and how does it influence the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the regio