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Robert Holzmann, a member of the European Central Bank Council and President of the Austrian Central Bank, stated that it is very difficult to bring inflation in the eurozone back to the European Central Bank's target level of 2%.
Holzmann pointed out that "the labor market and climate change are the two major challenges we face now and in the future, and I believe this will make it difficult for us to return to the 2% level unless the economy enters a recession that exceeds our expectations. I hope this will not happen, but I currently do not see mechanisms to alleviate these price pressures, nor do I see conditions to quickly reach the 2% target
This Austrian central bank governor is one of the most hawkish decision-makers at the European Central Bank. The latest economic forecast released by the European Central Bank in September indicates that the growth of the consumer price index will return to its target level in the second half of 2025.
Holzmann emphasized, "Some people claim that the prediction model has been improved, so it will be more accurate. But I am not sure about this because the model does not accurately reflect structural changes. The accuracy of the European Central Bank's prediction model is still relatively reliable within a year, but based on these models, I am always cautious about what will happen in two or three years
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