Latest news with #RobertHolzmann
Yahoo
3 days ago
- Business
- Yahoo
ECB's Rebel Voice Bows Out With Plea for Greater Transparency
(Bloomberg) -- The European Central Bank's most rebellious interest rate-setter has one last suggestion before he departs this month: more transparency on policy decisions. Arch hawk Robert Holzmann, who's been comfortable delivering a lone 'no' vote on occasions during the ECB's monetary-easing push, wants outsiders to glean more of an understanding of officials' thinking as they calibrate borrowing costs. The US-Canadian Road Safety Gap Is Getting Wider Festivals and Parades Are Canceled Amid US Immigration Anxiety A Photographer's Pipe Dream: Capturing New York's Vast Water System To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain He'd like to see a version of the Federal Reserve's dot plot, under which policymakers anonymously provide their projections for rates. Alternatively, views diverging from the narrative presented by President Christine Lagarde could be summarized and released. 'When we start out, unanimity is a strong signal,' Holzmann said in an interview before he cedes control of Austrian's central bank to former Economy Minister Martin Kocher. 'But if the situation is not as clear in what direction you need to move because there are arguments in all directions, then I think deviations have information for the market.' The parting advice caps a six-year stint for Holzmann at the ECB, where the 76-year-old was among the staunchest supporters of the unprecedented ramp-up in rates unleashed to tame the euro zone's sharpest-ever spike in prices. With inflation returning toward the 2% target, Holzmann didn't back a June reduction that brought borrowing costs to the same level. He's also questioned other moves during the cutting campaign. But while Lagarde singled him out at a press conference this year for failing to fall in line with the rest of the 26-member Governing Council, Holzmann says he's never had any conflict with the ECB chief and speaks highly of her work. His plea to boost transparency came at a farewell dinner last month in Frankfurt, when asked by Lagarde for his thoughts on how the ECB could operate more effectively. The idea will probably remain just that, however, as a yearlong strategy review wrapped up only recently. 'Some people have fewer problems with being dissenters than others,' Holzmann said. 'But then there have been elements where I thought deviation starts to be needed.' Some in Vienna saw such defiance as a reputational risk for Austria — a country known for decades of consensual multi-party government that often keeps political intrigue and haggling behind closed doors. Any quibbling by other hawks, who include Executive Board member Isabel Schnabel and Bundesbank President Joachim Nagel, hasn't been reflected in their votes. In Austria, few questioned Holzmann's inflation-wary approach, which helped make him one of the most accurate predictors of central-bank policy as a surge in energy prices prompted the ECB to raise rates by 450 basis points in little more than a year. His successor hasn't discussed monetary policy publicly, but takes over an institution with a long-standing tradition of being more cautious on inflation than others. Unlike Holzmann, who arrived after a career almost exclusively in academic research, Kocher — a behavioral economist — comes fresh from a spell navigating messy coalition politics. Amid a major personnel shakeup at the ECB this year, Holzmann declined to say who may replace him at the far end of the hawkish spectrum. 'With seven new people coming in, I could imagine that at least one or two of those could take over,' he said. 'Definitely from the informal discussions, I know that a number of people often sided with me on substance, but not on the decision.' What Declining Cardboard Box Sales Tell Us About the US Economy Americans Are Getting Priced Out of Homeownership at Record Rates Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan How Syrian Immigrants Are Boosting Germany's Economy Twitter's Ex-CEO Is Moving Past His Elon Musk Drama and Starting an AI Company ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
ECB's Rebel Voice Bows Out With Plea for Greater Transparency
The European Central Bank 's most rebellious interest rate-setter has one last suggestion before he departs this month: more transparency on policy decisions. Arch hawk Robert Holzmann, who's been comfortable delivering a lone 'no' vote on occasions during the ECB's monetary-easing push, wants outsiders to glean more of an understanding of officials' thinking as they calibrate borrowing costs.
Bloomberg
18-07-2025
- Business
- Bloomberg
Trump's Fed Threat Risks Price Stability, Incoming ECB Rate Setter Says
Incoming Austrian central bank Governor Martin Kocher said Donald Trump's attack on the Federal Reserve's independence puts price stability at risk. The former economy minister — who's set to replace Robert Holzmann on the European Central Bank's Governing Council in September — said Trump's administration is disregarding Fed independence based on dubious legal reasoning and with the clearly stated desire to reduce US debt costs.
Bloomberg
09-07-2025
- Business
- Bloomberg
ECB Doesn't Need to Cut Rates Any Further, Holzmann Tells MNI
The European Central Bank doesn't need to continue easing policy as borrowing costs may already be providing stimulus to the economy, according to Governing Council member Robert Holzmann. 'There is no reason at the moment why a further cut should take place — definitely not at the next meeting, and also for the rest of the year,' the Austrian central-bank chief was cited as saying in an interview with Market News. He added that under his assessment, the current level of borrowing costs 'puts us at least at neutral, but quite likely in expansionary territory.'
Business Times
16-06-2025
- Business
- Business Times
EU interest rate tightening may not affect Singapore directly: Austrian central bank governor
[SINGAPORE] Europe's return to conventional monetary policy will not affect Singapore directly through interest rates, but indirectly through the Republic's investments overseas, said Professor Robert Holzmann, the governor of Austria's central bank, on Monday (Jun 16). 'The effects will be more through the asset channel, not through our interest rate policy,' he told The Business Times after delivering a lecture at the Singapore Management University's School of Economics. Between 2009 and 2021, central banks in advanced economies used unconventional monetary policy – such as negative interest rates and asset-purchasing programmes – to avoid deflation and get inflation back up towards long-term targets, he noted. But this had adverse outcomes such as hurting banks' profits, and unwelcome implications, including the creation of zombie firms kept alive by easy money. Since 2022, to combat rising inflation, many central banks have shifted back to the conventional monetary policy of raising interest rates, he said. This often forces other countries to raise their own interest rates, which could constrain growth. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up But for Singapore – which uses exchange rates rather than interest rates as a policy tool – Europe's interest rate policy may not have 'any large or measurable effects' by itself, he told BT. Rather, the effect will be through assets. Higher interest rates in Europe mean that European assets offer higher returns. As a result, investors, including in Singapore – might reallocate some money from other markets into European assets, in the name of diversification and risk management. 'I think the diversification possibilities for Singapore would increase, and as a result of it, Singapore would profit,' said Prof Holzmann. 'Because if you have only one asset in the world you want to buy, you're always subject to a monopoly. If you have two or three assets, perhaps other assets coming to the table, you can profit because you have better risk management.' As interest rates rise, Singapore benefits as it has high reserves, he said. And investments by Singapore's retirement fund, for instance, would also gain value: 'You will get higher than before.' Cooperation on digital currency Separately, Prof Holzmann noted that the governors of the central banks of Singapore, Austria and other states meet every two months at the Bank for International Settlements to discuss topics of shared interest. Digital money, for instance, 'is definitely something which will interest Singapore in the future, and vice versa', he said. 'I think we're at the beginning of a revolution. We don't know yet how to proceed.' Checking on new products and ideas is thus useful, he added, citing experimentation efforts with digital transfers in Hong Kong and Thailand.
