MNI BRIEF: ECB Could Cut 50bps If Supported By Data - Vujcic

The ECB should cut interest rate in 25bps increments, Croatian National Bank governor Boris Vujcic told on an an ongoing MNI Connect webstream, although 50bps moves should not be excluded if warranted by incoming data.

Vujcic repeated his view that rate cuts are unlikely before the summer, though earlier moves cannot be ruled out as the ECB pursues a meeting-by-meeting policy approach.

Inflation will increase slightly this year before beginning a long, slow decline, he said, adding that it would be preferable for the ECB not to have to raise rates again once easing has begun. However, a continuous process of lowering key interest rates need not mean cuts at every monetary policy meeting, Vujcic said.