New ECB policymaker Holzmann says sceptical of more easing

[ZURICH] The new Austrian National Bank (OeNB) governor, Robert Holzmann, is wary about adding further stimulus to the euro zone economy, he told Austrian broadcaster ORF TV on Sunday, his first day on the job.

"I am sceptical about further expansion of the money supply, (of) lowering the deposit rate," said Mr Holzmann, who as central bank head gets a seat on the policy-setting ECB Governing Council.

Asked if that meant the current level of interest rates was the absolute floor, he said: "If (they change), it should rather go in the other direction."

Mr Holzmann had already set out a hawkish stance, telling ORF radio in an interview aired on Saturday that stepped-up monetary stimulus for the euro zone posed more risks than benefits.

REUTERS