Select Language

ECB's Holzmann: I dissented in this week's rate decision

Breaking news

ECB's Holzmann: I dissented in this week's rate decision

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.06 18:23
ECB's Holzmann: I dissented in this week's rate decision

update 2025.06.06 18:23

European Central Bank (ECB) policymaker Robert Holzmann said on Friday,  "I dissented in this week's rate decision."

Additional quotes

Lowering rates at a time of high savings and low investments has no effect except a monetary effect.

I didn't affect the outcome of the Governing Council meeting with my lone vote.

We are currently expansive in our monetary policy.

Lagarde said we are at the end of the cycle, I wanted to discuss whether that is the case.

Current nominal neutral rate is around 3%.

Market reaction

These comments fail to inspire the Euro (EUR), keeping EUR/USD 0.28% lower on the day at 1.1411 as of writing.

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.


Date

Created

 : 2025.06.06

Update

Last updated

 : 2025.06.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Silver Price Forecast: XAG/USD dips below $36.20 after bearish reversal, US yields rebound

 Silver price sinks more than 1% on Friday, ahead of the weekend, after refreshing five-day highs of $36.83, ahead of $37.00. At the time of writing, XAG/USD trades at $36.16 due to a slight recovery in the US dollar and rising US Treasury yields.
New
update2025.06.28 05:57

Canadian Dollar snaps lower after Trump pulls the plug on trade talks with Canada

The Canadian Dollar (CAD) backslid on Friday, falling back on a combination of weakening Canadian Gross Domestic Product (GDP) growth metrics and fresh trade tensions with US President Donald Trump.
New
update2025.06.28 05:43

EUR/USD slips below 1.1700 as core PCE tops estimates, Eurozone data mixed

The EUR/USD retreats from yearly highs above 1.1750, tumbling below 1.1700 despite market participants being convinced that the Federal Reserve (Fed) will cut rates at the September meeting.
New
update2025.06.28 05:39

AUD/USD retreats from YTD highs as risk sentiment steadies, US Dollar firms

The Australian Dollar (AUD) is pulling back from weekly highs against the US Dollar (USD) on Friday.
New
update2025.06.28 04:37

Dow Jones Industrial Average accelerates into the high end as interest rate cut bets climb

The Dow Jones Industrial Average (DJIA) gained ground on Friday, driven by a combination of investor expectations that the US will figure out how to secure trade deals that circumvent its own ringfence of threatened tariffs, and rising expectations of more rate cuts from the Federal Reserve (Fed) by
New
update2025.06.28 03:50

NZD/USD holds below YTD peak, capped in rising wedge pattern

NZD/USD struggles to extend its recent advance on Friday, hovering near 0.6045 after an intraday high of 0.6079. The pair remains trapped inside a rising wedge formation, typically a bearish signal, as the broadly weak US Dollar steadies.
New
update2025.06.28 03:23

WTI Crude Oil posts largest weekly drop since March 2023

West Texas Intermediate (WTI) Crude Oil has fallen sharply since reaching a high of $76.44 on Monday, with prices declining more than $10.00 per barrel this week.
New
update2025.06.28 03:19

Gold plunges below $3,300 as risk appetite surges on China trade deal, Middle East diplomacy

Gold price tumbled over 1.50% on Friday amid an improvement in risk appetite, driven by several factors.
New
update2025.06.28 02:40

EUR/USD hits multi-year highs as USD struggles despite hotter PCE print

The Euro (EUR) climbs for an eighth consecutive day against the US Dollar (USD) on Friday, as the Greenback remains under pressure amid a combination of political and economic headwinds.
New
update2025.06.28 01:44

Tensions on the Copper market - Commerzbank

According to the International Copper Study Group, the Copper market slipped from a supply surplus to a supply deficit of 50 thousand tons in April, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
New
update2025.06.28 01:34

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel