ECB’s Holzmann: I dissented in this week’s rate decision

• Lowering rates at a time of high savings and low investments has no effect except a monetary effect.
• I didn’t affect the outcome of the Governing Council meeting with my lone vote.
• We are currently expansive in our monetary policy.
• Lagarde said we are at the end of the cycle, I wanted to discuss whether that is the case.
• Current nominal neutral rate is around 3%.

No surprise here that he dissented as that was telegraphed pretty well in his comments preceding the ECB decision. He’s been the most hawkish member for quite some time now.

This article was written by Giuseppe Dellamotta at www.forexlive.com.