ECB’s Holzmann: 50 bps July rate hike would have raised expectations of bigger rate rises afterwards

“Even if we had started with a 50 bps rate hike it might have an effect on credibility but it would have raised expectations of bigger rate rises afterwards, “European Central Bank (ECB) Governing Council member Robert Holzmann said on Friday.

Holzmann added, “financial markets reacted very well to yesterday’s announcement.”