European Central Bank member Holzmann: A 50 basis point rate cut is not a good decision.

Robert Holzmann, a member of the European Central Bank (ECB) Governing Council and the Austrian National Bank, warned in his comments to CNBC on Wednesday that a 50 basis point cut in interest rates in 2025 would not be a good decision.

Holzmann also advised policymakers at the ECB to exercise extreme caution regarding the tariffs that the Trump administration intends to impose on the European Union, explaining that the announced tariffs threaten to increase inflation risks.

Moreover, the ECB member clarified that increased trade frictions undermine economic growth while also adding inflationary pressures at the same time; therefore, the ECB will need to show more patience.