DUBROVNIK, Croatia (Reuters) -The European Central Bank is “nearly done” cutting interest rates if inflation settles at 2% as expected, ECB policymaker Boris Vujcic said on Saturday. The ECB cut interest rates on Thursday for the eighth time in the past year and signalled a policy pause next month since inflation was now safely back […]
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ECB is ‘nearly done’ with cuts if forecasts hold, Vujcic says
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DUBROVNIK, Croatia (Reuters) -The European Central Bank is “nearly done” cutting interest rates if inflation settles at 2% as expected, ECB policymaker Boris Vujcic said on Saturday.
The ECB cut interest rates on Thursday for the eighth time in the past year and signalled a policy pause next month since inflation was now safely back at its 2% target after three years of overshooting.
“I would agree we are nearly done and that we are in a good position,” Croatia’s central bank governor told reporters on the sidelines of a conference.
“If our projections materialise as they are in June I would think this is the right qualification of our monetary policy stance.”
He warmed any surprises in growth and inflation data would “affect” the ECB’s thinking, as would the hard-to-predict outcome of the European Union’s trade negotiations with the United States.
(Reporting By Francesco CanepaEditing by Tomasz Janowski)