ECB’s Vujcic is upbeat about a eurozone soft landing, still has a data dependent rate view

Boris Vujčić Governor of the Croatian National Bank and thus an European Central Bank Governing Council member. He spoke in an interview, sounding upbeat on achieving a eurozone soft landing.

  • “If our current projections materialize, then we will have a soft
    landing with a low sacrifice ratio, meaning without a recession and
    without a significant increase in unemployment”
  • “We cannot be
    certain that it will stay that way until we reach our goal, but in my
    view the soft landing is still a central scenario”

Vujčić is wary of the uncertainty due to the war between
Israel and Hamas, noting there is still a risk that it’ll send energy prices higher. presents a key source of uncertainty as it risks
sending energy costs higher.

On his outlook for rates says its too early to consider rate cuts, and nodded to data dependence:

  • “However, we have
    to stand ready either for a possibility of rate increases or rate
    cuts, depending on incoming data in 2024”

This article was written by Eamonn Sheridan at Source