Austrian central bank chief believes interest rate cut in June is possible

The latest forecasts from the ECB economists in March assume that inflation in the euro area will weaken from 5.4 percent in 2023 to 2.3 percent there and then to 2.0 percent in 2025. “It’s possible that inflation will actually do better, but let’s see,” Holzmann said. An important factor is the development of wages. “Wages are definitely a risk in terms of inflation, but we have also seen that as companies lose their pricing power they have to accept lower prices.”