ECB’s Vujčić: Delay in Disinflation Could Postpone Rate Cut

17 June 2024

By Aurėja Bobelytė – VILNIUS (Econostream) – Any delay in reaching the target inflation level could push back a further reduction of interest rates, European Central Bank Governing Council member Boris Vujčić said Monday.

In an interview with Bloomberg, Vujčić, who heads the Bank of Croatia, said, ‘Any prolongation of the inflation conversion toward the medium-term target weakens the case for an interest rate cut, and vice versa.’

The ECB would closely follow incoming data until September, at which point new inflation readings and the new economic projections would be available, he said.

‘July is always an option, but much more data will be available in September. Everything is open at that meeting — a pause or a cut. I don’t want to show any signals of what we want to do before we see more data’, he said.