According to Central Bank Governor of Austria and ECB Governing Council member Robert Holzmann, the European Central Bank should not give up its battle against record inflation, even as the risk of a Eurozone recession grows. This strict line of monetary policy would follow the path already taken by the Fed overseas.
Holzmann is one of six ECB officials to publicly support an interest rate hike of more than half a point at its next policy meeting on September 7-8, 2022.
“I see no reason to show tolerance in our position and our desire to reduce inflation,” the Governor said Wednesday in an interview in Alpbach, Austria.
“We still see an important task ahead of us and we need to tackle it with determination, which means we need to move as quickly as possible towards and most likely beyond the equilibrium interest rate.”