It seems unlikely that the European Central Bank will start reducing interest rates anytime soon. This was reported by Bloomberg referring to ECB Governing Council member Boris Vujicic.
According to him, if the ECB’s 2024-2025 predictions for the eurozone economy come true, there can be no question of any interest rate. It’s too early to talk about this for now.
Vujicic believes that a decision on a rate cut will most likely not be taken at the regulator’s meeting next week. The basic scenario is that interest rates remain at the current level and new data on the economy are awaited.
At the same time, the ECB board member did not rule out that the regulator could return to increasing interest rates. However, he noted that this was not a likely scenario.
Before this, investors were already speculation Due to the slowdown in inflation, it is on the agenda for the European Central Bank to reduce interest rates in March. However, Vujicic’s statement cooled the atmosphere a bit.
Previously ECB was recorded The growth of non-performing loans in euro area banks.