European Central Bank member Holzmann: The next interest rate cut may take longer.

During his speech on Saturday, European Central Bank Governing Council member Robert Holzmann stated that he expects the next interest rate cut by the European Central Bank may take longer after recent data showed a larger increase in inflation rates.

The key points from Holzmann's remarks were:

• It may now take longer before the ECB cuts interest rates again.
• While it is true that some energy prices are rising again, there are also other scenarios for how inflation might accelerate; such as a stronger than expected depreciation of the euro.
• I do not see price increases at present.
• One of the other potential scenarios is that Trump’s tariffs could slow economic growth in the eurozone overall, but they may also create inflationary pressures at the same time.
• The strength of the impact of Trump’s tariffs critically depends on whether the dollar will rise and the extent to which the euro will weaken.

Holzmann's comments come after recent inflation data released by Eurostat showed inflation returning to an upward trend in November, with the overall inflation rate recorded at 2.3% year-on-year, after being 2.0% in October.