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Holzman: If there are no major surprises in the subsequent data, we should raise rates again in September


  Governing Council member and Austrian Central bank President Robert Holzmann said that the European Central Bank (ECB) has not yet defeated inflation and may need to raise interest rates again in September.

  In an interview with Bloomberg TV, he said: "The economy may not be at risk of falling into recession, and the tight labor market means unions may demand a big wage increase." We don't know yet how inflation is going to play out, and I'm going to look at all the information to assess the inflation risk. If there are no big surprises, I think there is a case for continuing to raise rates without pause."

  "The best strategy is to peak faster, which also means we can eventually start lowering interest rates earlier," he said. The stop-go rate path is harder for markets to digest."

  "The ECB is still a bit behind in the fight against inflation," he added.

  Asked if further rate hikes were needed after September, he said: "Once we get to 4 percent, we'll talk about it again."

  On the economic outlook, he said: "The economy is not doing as well as we expected, but at the same time, the slowdown is not as severe." The economy is probably just stagnating, not in recession."

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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