ECB hawk calls for rate cut pause until September amid trade tensions

The European Central Bank should pause interest rate cuts until at least September, according to hawkish policymaker Robert Holzmann, who argues that further cuts could be risky amid the EU-US trade tensions. Holzmann sees no reason for rate reductions at the upcoming meetings, suggesting that uncertainty, rather than monetary policy, is stalling economic activity in the Eurozone. He believes that Germany’s planned €1tn spending could stimulate growth, noting that he is not isolated in his views within the ECB’s governing council.

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