Member of the European Central Bank (ECB) Governing Council and Austrian National Bank (OeNB) Governor Robert Holzmann warned on Wednesday that a 50 basis points interest rate cut in 2025 "wouldn't be a good decision."
The central banker told CNBC that ECB's policymakers should be very cautious as global tariffs announced by United States President Donald Trump threaten to increase inflation risks.
"My take is that [disinflation] won't speed up ... because the models I know and we use, what they [show] is that an increase in trade frictions reduces growth, that's true, but at the other end, it also increases inflation, so we will have to be more patient," Holzmann concluded.
