Geopolitical risk is the biggest threat to a prospective June rate cut from the European Central Bank, according to ECB policymaker Robert Holzmann.
Geopolitical risk is the biggest threat to a prospective rate cut from the European Central Bank, according to ECB policymaker Robert Holzmann.
The ECB on Thursday left its policy unchanged for the fifth consecutive meeting, but signaled that cooling inflation means the institution could soon start to moderate rates. "At this stage, I think the biggest threat is geopolitics, because we have seen what's happened in the Middle East," Austrian central bank governor Holzmann told CNBC's Karen Tso on Wednesday on the sidelines of the International Monetary Fund Spring Meetings.
"The biggest risks stem from geopolitics, both the deteriorating situation in Ukraine and the possible escalation of the Middle East conflict, with all their ramifications," Rehn, who serves as the governor of the Bank of Finland, said in a statement. "As summer approaches we can start reducing the level of restriction in monetary policy, provided that inflation continues to fall as projected.
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