Further reductions of European Central Bank borrowing costs may risk a stronger impact on the euro exchange rate and inflation, according to Governing Council member Robert Holzmann. “If the original assumption of three rate cuts were to materialize, and the Federal Reserve didn’t respond, it would certainly have an impact on the exchange rate, and with it inflation,” Holzmann told public broadcaster ORF in a radio interview aired Saturday. He said the ECB’s first rate move on Thursday didn’t yet make him concerned on the matter. Austria’s central bank chief was the only dissenter against this week’s decision to cut ... (full story)