ECB member: 'I cannot imagine that we'll talk about cuts yet'

It’s conceivable that the European Central Bank decides against cutting rates in 2024, says Robert Holzmann – Governor of the central bank of Austria.

Inflation remains a concern in the euro zone

In an interview with CNBC at the World Economic Forum in Davos on Monday, Holzmann said those who are expecting a rate cut in April will “deeply disappointed”.

His comment arrives shortly after inflation in the euro zone was reported at 2.9% for December – up significantly from 2.4% in the previous month. Much of that increase was related to energy prices.

The Euro Stoxx 50 has lost about 2.0% over the past thirty days.

Geopolitical tensions are rising fast

Holzmann does not see a possibility of an interest rate cut unless it’s evident that inflation is reliably declining towards the ECB’s 2.0% target.  

The member of the Governing Council of the European Central Bank also cited the ongoing Israel-Hamas war and the related geopolitical tensions for his view on Monday.

Also today, experts at Barclays lowered their expectations for the price of crude oil (average) this year from $93 a barrel to $85 as Invezz reported here.