Austria’s National Bank Governor Robert Holzmann sees the danger that inflation in the euro area will be higher than expected by the ECB. The European Central Bank is currently forecasting that the rate of inflation will decline steadily from the beginning of next year after the high at the end of 2021 and will again be below the ECB’s target of two percent at the end of the year, said the Austrian ECB Council member on Saturday in an interview with ORF Radio station S1.
“There are indications that there is a risk that inflation is higher, but that assessment will be able to be checked very, very quickly when we see how inflation is realizing next year. If there is not this sharp decline, the current one is addressed, then everyone, including other colleagues, will certainly also undertake a revision and we will of course change our monetary policy direction, “said Holzmann.
There are different views in the Governing Council of the current very high inflation, but these are not trenches, but nuances, said the central bank chief. If the inflation forecast increases, the ECB is ready to adjust monetary policy accordingly. Holzmann assumes that the new virus mutation Omikron will weaken the upswing, but that economic dynamism will still be high in 2022. He does not see a wave of bankruptcies rolling towards Austria.