New Austrian central bank head sets out hawkish line for ECB

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New Austrian central bank head sets out hawkish line for ECB
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Stepped-up monetary stimulus for the euro zone poses more risks than benefits, new Austrian central bank governor says ahead of ECB's policy meeting on September 12

Flags are pictures in front of the European Central Bank headquarters in Frankfurt, Germany, July 25, 2019.

In an interview with Austrian broadcaster ORF aired on Saturday, Holzmann, who takes over from Nowotny on September 1, said he was working with OeNB staff to draw up his policy positions. "The probability of further effects is very slight. On the other hand the short- or long-term risks associated with this have risen to a great extent because low rates per se carry the risk of misallocation of resources and misallocation of price discovery.

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