ECB's rebel voice bows out with plea for transparency

The European Central Bank's most rebellious rate-setter has one last suggestion before he departs this month: more transparency on policy decisions. Arch hawk Robert Holzmann, who's been comfortable delivering a lone 'no' vote on occasions during the ECB's easing push, wants outsiders to glean more of an understanding of officials' thinking as they calibrate borrowing costs.

He'd like to see a version of the Federal Reserve's dot plot, under which policymakers anonymously provide their projections for rates. Alternatively, views diverging from the narrative presented by President Christine Lagarde could be summarized and released.

"When we start out, unanimity is a strong signal," Holzmann said in an interview before he cedes control of Austrian's central bank to former Economy Minister Martin Kocher. "But if the situation is not as clear in what direction you need to move because there are arguments in all directions, then I think deviations have information for the market."


The parting advice caps a six-year stint for Holzmann at the ECB, where the 76-year-old was among the staunchest supporters of the unprecedented ramp-up in rates unleashed to tame the euro zone's sharpest-ever spike in prices.

With inflation returning toward the 2% target, Holzmann didn't back a June reduction that brought borrowing costs to the same level. He's also questioned other moves during the cutting campaign.

But while Lagarde singled him out at a press conference this year for failing to fall in line with the rest of the 26-member Governing Council, Holzmann says he's never had any conflict with the ECB chief and speaks highly of her work.

His plea to boost transparency came at a farewell dinner last month in Frankfurt, when asked by Lagarde for his thoughts on how the ECB could operate more effectively. The idea will probably remain just that, however, as a yearlong strategy review wrapped up only recently.