Head of the Central Bank of Austria Robert Holzmann called on the monetary authorities of the European Union to flexibility in conducting monetary policy. His words gives CNBC.
According to Holzmann, the European Central Bank (ECB) should be thought about to combat inflation, which is a permanent risk for the European economy. The financier is considered a supporter of a more rigid, “hawk” monetary policy providing, among other things, high interest rates on the market.
The words of Holzmann sounded shortly after the statement of the ECB about the intention to maintain the base rate at low levels during the indefinitely long time – until the inflation indicators in the eurozone reached the target two-minded level.
“We would like another leadership [ECB], which would not associate us [Conditions] to such a remote perspective to remain flexible and ready if inflation will require, at any time raise,” said Holzmann.
Currently, the Basic ECB rate is at the zero level. So the regulator seeks to stimulate the population and the company of the eurozone countries to teach more loans to restore the regional economy from the coronavirus pandemic.