Boris Vujčić, Governor of the Croatian National Bank and European Central Bank Governing Council member spoke in an interview Saturday, confirming what we all know – more rate cuts to ahead from the Bank.
- “The direction is clear, it’s the continuation of the direction from 2024, and that is the further reduction of interest rates”
- He doesn’t know where the terminal rate will be:
“That will be determined by data, primarily the inflation rate, will it decelerate, according to our projections, and we will see the impact of the transmission of the monetary policy, and our projections.”
On Trump tariffs:
- “If there is a trade war, that will be bad for growth in Europe and in the rest of the world”
- “a trade war, that won’t be good for anyone”
At its final meeting this year the European Central Bank cut rates:
EUR/USD closed the week well under 1.05, policy divergence expectations weighed heavily (but not exclusively).