ECB Governing Council member Boris Vujcic, Croatian central bank Governor, said, “we are likely to see more rate action beyond March.” But policymakers are going to wait for data to come in, ” then decide in May, June, July what we’re going to do.”
While the markets are pricing in a 3.4-3.5% terminal rate, Vujcic said, “It’s the market’s job to try to figure out what the terminal rate is, but it’s not something we have to do at this point in time… I would leave the issue of the terminal rate for later.”
Vujcic believed that headline inflation has peaked. He added, “already in November I argued that my worry was not a further increase in inflation, but the persistence.”
