The decision of the European Central Bank to lower interest rates in January is not predetermined, said Robert Holzmann, head of the Austrian Central Bank and a member of the ECB Governing Council. He noted that reducing interest rates in the face of accelerating inflation, albeit temporarily, could undermine confidence. Ahead of the January 30 meeting, Holtzman intends to rely solely on up-to-date statistical data. December inflation in the eurozone reached 2.4% in annual terms, which exceeds the target 2% and is the highest since July. The November figure was 2.2%. According to Holtzman, no significant changes are expected in January at the current dynamics. The weakening of the euro against the dollar may partially mitigate the effect of duties, but at the same time it may provoke an increase in prices for imported goods, increasing inflationary pressure. During 2024, the ECB has already lowered key interest rates by 100 basis points. Currently, the deposit rate is 3%, the main refinancing operations are carried out at 3.15%, and the marginal rate is set at 3.4%.
