As his term on the European Central Bank (ECB) Council draws to a close, Austrian Nationalbank Governor Robert Holzmann is advocating for a more restrictive monetary policy within the Eurozone. Responding to a question regarding whether the Council should reconsider a more stringent approach, Holzmann told the Handelsblatt that a firmer stance is “definitely yes.
Holzmann is known within the Council, the body responsible for determining interest rate levels in the Eurozone, as a consistent proponent of tighter monetary policy. He has repeatedly voiced reservations concerning the scale and pace of the recent series of interest rate cuts – eight since last summer and seven consecutive reductions most recently.
The 76-year-old’s tenure as head of the Austrian Nationalbank concludes this summer, to be succeeded by former Austrian Minister for Economic and Labour Affairs, Martin Kocher. Holzmann advises his successor to “listen to one’s own judgment based on all analyses and act accordingly.
Holzmann has held the position since 2019. The ECB’s interest rate decision on July 24th will be the last he attends as a Council member. He expressed a mix of emotions regarding the departure, noting a sense of sadness that an engaging chapter of his life is nearing completion, excitement for new endeavors and leisure time and anticipation for what the future holds.