A further reduction in interest rates by the European Central Bank may be put on hold after inflation began to creep back up a member of the ECB Governing Council has suggested.

Robert Holzmann, who is also the Austrian National Bank, spoke to Austrian media about the likelihood of future changes to interest rates.

"I don't see any interest rate hikes at the moment. What could happen, though, is that one takes more time until the next interest rate cut," Holzmann told Austrian newspaper Kurier.

Eurozone annual inflation increased in November to 2.2% from 2% a month earlier and above the ECB's 2% target rate.

"Yes, there are signs of an upward trend in some energy prices. But there are also other scenarios as to how inflation could return, like via a stronger devaluation of the euro," said Holzmann.

Holzmann was also asked about the potential economic impact of incoming US President Donald Trump's threats to impose trade tariffs.

"A likely scenario is that Trump's tariffs lead to an overall slowdown in growth, but also create inflationary pressure. More so in the US than with us," Holzmann said.

"How strong the effect will be depends crucially on whether and how much the dollar appreciates and the euro depreciates," he added.

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