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”
ECB's Vujcic