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ECB’s Holzmann Says Latest Interest Rate Hike Might Not Be Last
Stubborn euro-area inflation could force the European Central Bank to raise interest rates again, according to Governing Council member Robert Holzmann. The Austrian policymaker defended the decision to lift the deposit rate for a 10th straight time this week and said the conclusion that the current level of borrowing costs will substantially advance the fight against price rises shouldn’t be understood as the ECB going soft. “We definitely can’t say that this was the final hike,” Holzmann said in an interview in Santiago de Compostela, Spain, where he’s attending a gathering of European finance chiefs. ... (full story)