Croatian ECB Governing Council member Boris Vujcic commented on market expectations for rate cuts during a webinar today, noting that the recent repricing from four to five cuts this year to three to four cuts seems “reasonable.”
He added, “I don’t feel uncomfortable with the current market pricing,” acknowledging the alignment between market sentiment and economic conditions.
However, Vujcic emphasized ECB’s data-driven approach, stating, “Markets have to make these predictions, we don’t. We can always wait for the data and then decide.”
Vujcic also highlighted ECB’s achievement in taming inflation without triggering a recession, often referred to as a “soft landing.” However, he cautioned that while the worst-case economic outcomes have been avoided, the lack of significant growth momentum raises concerns about stagnation.
