Housing cost contributing to inflation more than expected – ECB’s Holzmann
Eurozone housing costs may be adding more to inflation in the bloc than the European Central Bank (ECB) previously thought, member of the Governing Council of the European Central Bank Robert Holzmann said on Friday.
According to Holzmann, Eurozone owner-occupied housing cost could be adding up to 0.5 pct points to the current inflation rate. Speaking on the issue of changing the inflation measure to reflect housing costs, Holzmann said
Additionally, Holzmann stated that hiking rates during a supply shock is counterproductive, which is why any increases in interest rates in 2022 aren’t “in line with current ECB guidance,” and will not happen in “less than three to five years.”
Get involved!
Comments