European Central Bank (ECB) is expected to further slash its borrowing rates in December if the economic data continue to be favorable, according to recent comments by ECB Governing Council member Robert Holzmann.
Holzmann, who serves as the head of Austria’s central bank, Oesterreichische Nationalbank, told media outlet Kleine Zeitung that there is “nothing at the moment that would argue” against another rate cut.
“As things look at the moment, it is possible (that there will be a cut in December). There is nothing at the moment that would argue against that, but that does not mean it will automatically happen,” Holzmann said.
However, Holzmann indicated that ECB, which serves as the central bank for European Union members who use EURO as their currency, will make the final decision on the data it receives next month.
“We do not have the latest forecasts and data. We will receive those in December. We will decide on that basis, yes or no,” he added.
ECB already lowered its interest rates three times since June, each time by 25 basis points, and brought it to 3.25%. It is widely expected that policymakers will cut the rate by a quarter of a percentage point in December if the move ends up happening.