VIENNA (Reuters) – The European Central Bank could lower its key interest rate before the U.S. Federal Reserve, ECB Governing Council member Robert Holzmann was quoted as saying on Saturday.

“Europe could cut interest rates before the U.S.,” Holzmann told Austrian newspaper Kronen Zeitung, noting that the European economy was growing more slowly than its U.S. counterpart.

Holzmann, 75, who is governor of the Austrian National Bank, also told the paper that he would not seek a second term at the helm of the country’s central bank. His term is due to run until the end of August 2025.

When rate cuts would come was currently under discussion within the ECB’s Governing Council, Holzmann said.

“From today’s perspective, I’d say: interest rate cuts are likely to come. When will depend largely on what wage and price developments look like by June,” he added.

The lower wage agreements in Europe were, the more scope there would be to reduce borrowing costs, Holzmann said.