ECB’s Holzmann expects first rate hike by autumn, maybe second in Dec

EUROPEAN Central Bank policymaker and hawk Robert Holzmann expects an initial interest rate increase this summer or autumn and for rates to rise gradually before settling next year around 1 per cent or 1.5 per cent, he told Austrian broadcaster ORF on Friday. “I belong to the group that is now in favor of rapid action. That means in summer, maybe in autumn. In addition and if necessary in December,” he said. The “equilibrium rate” of around 1 per cent or 1.5 per cent will probably be reached next year, compared to a current deposit rate of -0.5 per cent, he added. AFP