ICYMI - Holzmann says geopolitical risk is the biggest threat to a potential ECB rate cut

Austrian central bank Governor Holzmann, a member of the European Central Bank Governing Council. He spoke with CNBC on the sidelines of the International Monetary Fund Spring Meetings.“At this stage, I think the biggest threat is geopolitics, because we have seen what’s happened in the Middle East,” “As you can imagine, only when a boat is sunk in the [Strait] of Hormuz and you may have a different oil price, and this of course may require us to rethink our strategy,” an abrupt rise in oil prices, for example, would constitute a “major, major shock.”We had indications of a potential June rate cut from ECB policy makers on wedensday:ECBs Cipollone: Sees some signs of an economic recovery citing PMI dataECBs Nagel: Price pressure in the euro zone could continue for some timeECBs Schnabel:Investors expect policymakers to continue to pay attention to act. inflationECBs Centeno: First cut in June is very likely.Number of cuts will depend on incoming dataECBs Nagel: A June cut is looking increasingly likely, but there is still some caveatsECB Pres. Lagarde: Growth in Europe mediocre. Much slower than the US This article was written by Eamonn Sheridan at www.forexlive.com.