Kocher suggests a nuanced approach to wage control

Martin Kocher, the newly appointed Governor of the Austrian National Bank, has outlined his vision for the future in a detailed interview with the O1 Journal. In his first public address since taking office, Kocher emphasised the importance of central bank independence and warned against political interference, particularly from the US government.

Kocher, who was appointed through an ÖVP ticket, sees no risk of political interference in the Austrian National Bank. He believes that the Bank should stand by the side of the government and social partners in an advisory capacity, but its primary role is to maintain the stability of the currency and the economy.

Inflation in Austria has been a topic of concern recently, with figures showing a rise and an increase in unemployment. However, Kocher maintains that inflation in Austria is "smaller than it seems". He advocates for a differentiated wage policy by sector, suggesting that wages should be allowed to rise more in certain areas.

On the issue of European monetary policy, Kocher advocates for reliability and warns against political influence. He believes that the euro will gain influence, but it is no replacement for the dollar in the near future. He also calls for a stop to US government interference in the affairs of the Federal Reserve, stating that such interference weakens the dollar as the global reserve currency.

Interest rates, according to Kocher, should not be manipulated for short-term gains. He believes that lowering interest rates and then raising them again is not a reliable policy. Instead, he advocates for a steady and consistent approach.

Kocher is neither a "hawk", advocate of a tight monetary policy, nor a "dove", supporter of an expansive monetary policy with low interest rates and cheap money for the economy. He calls for a positive vision of the future, emphasising the importance of pulling together and creating a positive vision.

The task of the Austrian Minister of Finance, Markus Marterbauer, is to set economic incentives and cut spending. Kocher sees the government and social partners as responsible in the fight against general inflation. The latest economic forecasts are expected in September, according to the article.

In a surprising move, Kocher has also voiced his support for the idea of a digital euro. He emphasises the importance of keeping his data with him and believes that a digital euro could offer greater privacy and security.

ÖVP politician Harald Mahrer sits on the general council of the national bank, but this is not problematic due to the ability to recuse oneself from potential conflicts of interest. Kocher has made it clear that he will maintain the independence of the Bank and ensure that it remains free from political influence.

In conclusion, Kocher's appointment as Governor of the Austrian National Bank marks a new chapter in the Bank's history. His focus on central bank independence, reliability in monetary policy, and a positive vision for the future is a welcome change and offers hope for a stable and prosperous future for Austria.