The ECB's top hawk loosens its stance on a rate cut in June while keeping an eye on the Fed's moves

ECB Governing Council member Holzmann said that the ECB may start cutting interest rates in June because inflation may fall faster than expected, but it should not be too far ahead of the Fed, as this will weaken the effectiveness of policy easing. "April is not on my radar," Mr. Holtzman said. "By June we will have more information. If the data allows, the decision will be made, and I am not opposed in principle to the easing of policy in June, but I would like to look at the data first, and I want to remain dependent on the data. Holzmann, who is considered by some to be the most conservative of the ECB's 26-member Governing Council members, has often pushed back against interest rate cuts, so he cautiously endorsed the June easing of policy, suggesting that there is a growing consensus within the central bank on the action proposals put forward by several members of the ECB.