ECB’s Vujčić: Data Will Say if We Have to Cut Rates Further or Stay Put

8 July 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boris Vujčić said on Tuesday that incoming data would determine if the ECB had to lower rates further or if it would be better off keeping them at current levels.

In an interview with German business daily Handelsblatt, Vujčić, who heads the Croatian National Bank, said that the ECB ‘should not be worried about smaller deviations we will probably see in the short term.’

The ECB now had the ‘luxury to wait’ and new data would determine what the next steps should be, whether further rate cuts or holding steady, he said.

‘We are in a good position with both inflation and interest rates at the level of 2%’, he said. ‘At this juncture we can wait for more data to come.’

Risks to inflation seemed to be two-sided now, according to Vujčić,

The September meeting will come after the release of CPI data for July and August, GDP data on Q2 and more information on monetary-policy transmission, as well as new ECB projections, he said.

‘All of that will give us more clarity on what we need to do’, he said.

Market expectations of one additional cut in 2025 were ‘fine’, according to Vujčić, who nevertheless said this did not mean that they had to materialise before the end of the year.

‘As I said, we will use all the incoming data before we meet again in September, and then also in October and December’, he said.