ECB unlikely to cut rates before summer – Vujcic

The European Central Bank (ECB) probably will not cut rates before the summer, Bloomberg reported, citing Governing Council member Boris Vujcic.

The chief of the Croatian central bank also said that the inflation will continue to ease gradually as officials await data on the euro zone’s labour market.

“We’re not talking about cutting interest rates now, and probably won’t before summer,” Vujcic told Croatia’s N1 TV.

Vujcic also said that the worsening economic weakness could fuel expectations of a plunge in inflation.

However, he added that the 20-nation euro area will dodge the first downturn since the pandemic.

“It looks like Croatia will avoid a recession, and probably also in the euro zone,” he said. “We’ll have a mild cooling, without a recession, while achieving our goal to lower the inflation.”