Headline: ECB's Holzmann: Potential for a 25 Basis Point Rate Cut in December

ECB Governing Council member and Austrian Central Bank Governor Robert Holzmann stated that despite ongoing upward inflation risks, the European Central Bank is likely to cut interest rates by another 25 basis points this year. In an interview in Washington, Holzmann also mentioned that neither a larger step nor a pause can be ruled out. "I can say that a quarter-point move in December is possible. While a half-point cut is not impossible, it is unlikely. However, we could also conclude that the preemptive cut in October might be sufficient to pause in December," he said. While the Portuguese Central Bank President Mario Centeno suggested a 50-basis-point move, most policymakers agreed that rates should fall further without going into details. Holzmann remarked that he sees no issue in reaching the neutral level more quickly if inflation data allows.