ECB Holzmann has no in-principle objection to a June rate cut

ECB’s Holzmann on the wires this morning:

• Says he doesn’t have an in-principle objection to cutting rates in June
• But also adds that he wants to see more supportive data
• Also added that cutting rates out-of-sync with the Fed would diminish the impact of policy easing by the bank
• with EZ productivity very weak, a 3.0% deposit rate could prove too tight over the long-term
• Also said it’s possible that inflation could do better than what the bank is currently projecting

All in all nothing too surprising here from Holzmann.

This article was written by Arno V Venter at www.forexlive.com.