In an interview with Reuters, ECB Governing Council member Boris Vujcic emphasized the need for “patience” in the current monetary policy environment. He acknowledged the positive disinflationary trends observed so far. However, “we still see also quite a lot of resilience in the services and what we call domestic inflation,” he noted.
The ECB official also underscored the importance of cautious decision-making, referencing an IMF paper that cautioned against central banks declaring victory over inflation prematurely. Vujcic emphasized, “I don’t think we should risk such a mistake.”
On the topic of rate cuts, Vujcic downplayed the significance of timing, suggesting that a month or two’s difference in the decision to reduce rates “doesn’t really make that much difference”, especially given that a serious recession now seems unlikely.
