“Europe might lower interest rates sooner than the USA,” said Holzmann in a newspaper interview. “The economy is growing more slowly in Europe than in the USA. This might mean that price developments here will weaken more.”
And the sooner the European Central Bank’s (ECB) long-term inflation target of two percent comes within reach, the sooner interest rates might be reduced. Wage agreements also play an important role. “Lower deals translate into lower price developments – and these allow us to move more quickly towards the long-term inflation target of two percent,” said Holzmann.
In the USA, on the other hand, wage development has increased by 5 percent and inflation is also “well above three percent,” said the Austrian central banker. According to recent statements by US Federal Reserve Chairman Jerome Powell, an interest rate cut in June is therefore uncertain.
Regarding the early advertising of positions for the board of directors, Holzmann said that it was particularly important that “the best minds emerge” following the process. However, he himself will not apply once more. “It was clear to me five years ago that it would be a six-year job for me and that I didn’t want to run for office once more following that,” said the OeNB boss in the newspaper interview.
