Interest Rates Need to Rise Further, But Still Unknown by How Much, ECB’s Vujčić Says
10 April 2023
By Xavier D’Arcy – FRANKFURT (Econostream) – The European Central Bank should keep hiking rates and the fight against inflation is not yet over, Governing Council member Boris Vujčić said on Monday.
Vujčić, who heads the Croatian central bank, told the Financial Times that ‘there are more rate rises ahead from where we are now. How much? I don’t know. More. The fight against inflation is not over.’
He said that he would have to see a ‘reversal in core inflation dynamics’ before rate hikes could be brought to an end by the ECB.
Regarding the impact of the introduction of the euro on inflation in Croatia, he said that ‘the impact of the euro introduction was not significant on prices.’
‘Some guys who increased prices too much, they found people don’t want to buy their coffee so they started to reduce it’, he said. This was evidence that markets were ‘still alive and they still work’, he said.