Vujcic asserts that ECB must continue raising rates despite public sacrifice

The ECB’s newest policymaker stated that rates need to continue rising after March and must be maintained at high levels for a while despite falling inflation and getting harder to justify to the public this ‘sacrifice.’

Policymakers are wondering when and where the ECB’s fastest tightening cycle will end after raising rates by 3 percentage points since July, especially since inflation is now rapidly declining from record highs.

• However, Croatia’s central bank governor, Boris Vujcic, whose country adopted the euro on January 1, claims that because of persistent underlying inflation, it is premature to forecast the end of rate hikes and that the cut that markets have already priced in for the new year is not even worth mentioning.