As he prepares to conclude his tenure on the European Central Bank (ECB) Governing Council, Austrian National Bank Governor Robert Holzmann is advocating for a more restrictive monetary policy stance within the Eurozone. Responding to a query regarding whether the Council should reaffirm a focus on tighter monetary conditions, Holzmann stated, “Undoubtedly, yes” in an interview with Handelsblatt.
Holzmann is widely recognized within the Council – the body responsible for determining interest rates in the Eurozone – as a consistent proponent of a stricter approach to monetary policy. He has publicly expressed reservations concerning the scale and pace of the recent series of interest rate reductions, noting eight cuts since last summer, including seven consecutive reductions.
The 76-year-old’s term as head of the Austrian National Bank concludes this summer, to be succeeded by former Austrian Minister for Economic and Labour Affairs, Martin Kocher. Holzmann has advised Kocher to “listen to one’s own voice and act accordingly” after careful consideration of all available analysis.
Having served since 2019, Holzmann’s final ECB Council meeting is scheduled for July 24th. He described the occasion as bittersweet, expressing a mixture of sadness, anticipation and excitement. “Sadness because an interesting period of my life is coming to an end, anticipation of new experiences and some leisure time and curiosity about what my interesting life still holds – I have many plans”.
