ECB’s Vujčić: Should Not Overreact to Small Inflation Deviations, Not Doing ‘Precision Surgery’

8 June 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boris Vujčić said on Sunday that the ECB should avoid overreacting to small changes in inflation as it was not doing ‘precision surgery’.

In an interview with Reuters, Vujčić, who heads the Croatian National Bank, said, ‘A few tens of basis points' deviation on either side of the target is not a problem. Because you will always have small deviations.’

To regard these as a problem would be overreacting, he said.

‘This is not precision surgery’, he said.

It was reasonable to expect inflation to pick up as energy prices stopped declining and the economy grew, he said.

It was unlikely that the euro would have second-round effects on inflation unless its strength lasted a few quarters, according to Vujčić.

Inflation risks were ‘pretty balanced’ and there was ‘complete uncertainty’ about trade tensions, he said.