ECB/Vujcic: Clear Course for 2025, Continuation of 2024 Direction Leading to Further Interest Rate Cuts

Forex - The Governor of the Croatian National Bank and member of the European Central Bank's Governing Council, Boris Vujcic, confirmed that further interest rate cuts are on the way.

"The direction is clear; the trend will continue in 2024, which means further reductions in interest rates," Vujcic stated, arguing that the ECB will continue to lower borrowing costs in 2025.

Vujcic remarked, "I don't know how low the ECB will cut rates. That will be determined by the data, especially the inflation rate, which according to our forecasts will slow down, and we will see the impact of the transmission of monetary policy and our forecasts."

He also pointed out a uncertainty affecting the outlook related to the threat of tariffs following Donald Trump's return to the White House next month, saying, "If there is a trade war, it would be bad for growth in Europe and the rest of the world," and emphasizing that trade wars typically increase prices, he added, "We hope not to see a trade war; it would be bad for everyone."