Robert Holzmann, a member of the European Central Bank Governing Council, stressed the need for a restrictive monetary policy due to ongoing inflation risks. He pointed out that strong wage gains in certain areas and geopolitical tensions are threatening price stability, which makes it uncertain whether the ECB will be able to achieve its 2% inflation target.

While there is a possibility of an interest rate cut in December, Holzmann warned that it is not guaranteed. These comments reflect the cautious approach of the ECB as it deals with complex economic challenges in the region.