National Bank Now with Kocher as Governor

A new chapter began at the Austrian National Bank (OeNB) on Monday: Martin Kocher, former IHS head and until recently ÖVP Minister of Economy and Labor, assumed his position as the new governor and thus the country's chief central banker. He took over the reins from Robert Holzmann, who led the National Bank for six years. In his concurrent role as a member of the ECB's Governing Council, Kocher will in the future participate in decisions regarding monetary policy in the Eurozone.

Kocher Saw "Dream Job"

On September 11, the economist, who once described the position as a "dream job," will attend his first council meeting at the European Central Bank. The next interest rate decision is also on the agenda. After a series of seven consecutive interest rate cuts, the ECB recently hit the pause button and kept its deposit rate at 2.0 percent.

Kocher takes on the highly paid top job amid an economically challenging situation for the country. Inflation is significantly higher than the Eurozone average, the budget deficit is large, and the economy is faltering. Additionally, the trade conflict in the USA is causing uncertainties - which the ECB must also consider when determining its monetary policy course.

No Direction Revealed

Kocher did not want to reveal which direction he leans towards in terms of monetary policy before taking office. However, he stated that he is neither a "hawk," a proponent of tight monetary policy, nor a "dove," a supporter of an expansive monetary policy with low interest rates and cheap money for the economy. Instead of aligning with a faction in the ECB Council, he is primarily concerned with "letting the facts speak, it's about making the right move at the right time," Kocher recently told ORF Radio. The times of categorizing between the two factions are over. Kocher also warned against oversimplifying monetary policy.

(APA/Red)

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