The head of the Central Bank of Austria Robert Holzmann called on the monetary authorities of the European Union to be flexible in the conduct of monetary policy. His words leads CNBC.
According to Holzmann, the European Central Bank (ECB) should think about fighting inflation, which is a constant risk for the European economy. The financier is considered to be a supporter of a tighter, hawkish monetary policy, which provides, among other things, high interest rates in the market.
Holzmann’s words came shortly after the ECB announced its intention to keep the base rate at low levels for an indefinitely long time – until inflation in the euro area reaches the target of 2 percent.
“We would like a different leadership [ЕЦБ]that would not bind us [условиями] for such a distant prospect, in order to remain flexible and ready in case inflation requires it, at any time to raise the rate, ”said Holzmann.
The ECB’s base rate is currently at zero. So the regulator seeks to stimulate the population and companies of the eurozone countries to lend more loans to restore the regional economy from the coronavirus pandemic.