© Reuters. FILE PHOTO: European Central Financial institution policymaker and Austrian Nationwide Financial institution (OeNB) Governor Robert Holzmann attends a information convention in Vienna, Austria December 2, 2019. REUTERS/Leonhard Foeger
ZURICH (Reuters) – The European Central Financial institution ought to hike rates of interest as many as 3 times this 12 months to fight inflation, hawkish policymaker Robert Holzmann advised the Salzburger Nachrichten paper in an interview.
“I believe it could be applicable to take at the least two and even three steps. These could possibly be smaller ones, i.e. 0.25 proportion factors every. If this have been to occur by December, it could have the impact that by 2023 the deposit charges for banks, which are actually minus 0.5 %, could be in optimistic territory,” the Austrian central financial institution governor was quoted as saying.
“You may nonetheless be fairly a bit away from the pure nominal rate of interest. So there may be nonetheless a protracted solution to go. However it could be sign to the general public.”