(Bloomberg) -- European Central Bank Governing Council member Robert Holzmann is less certain than previously about whether three additional big interest-rate increases will be needed, following recent turmoil in the banking system. 

The gyrations that culminated in UBS Group AG’s takeover of Credit Suisse Group AG have led to decreased liquidity in the financial system, which may put downward pressure on inflation, Holzmann told broadcaster ORF in an interview. That could mean borrowing costs won’t have to rise further, or they could be lifted more gradually, he said. 

Asked if he stood by his earlier call that last week’s half-point hike should be followed by three identical steps, the Austrian central-bank chief said: “I wouldn’t rule them out, but I also wouldn’t say that they’ll necessarily come either.” 

ECB officials last week didn’t give any guidance on their next steps. President Christine Lagarde said Monday that repeating recent practice and signaling further rate increases “was not the right policy indication to give” given the current uncertainty.

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