MNI BRIEF: Market Cut Pricing Not A Policy Problem - Vujcic

The persistent mis-match between market pricing of ECB rate cuts and the ECB's own assessment is not a problem for policymakers, Croatian National Bank governor Boris Vujcic told an ongoing MNI livestream event.

"We like to see markets aligning more with the way we think, but I’m among those that has less problem with seeing markets further away than where we would like them to be," he said.

Market bets on cuts of around 140bps this year mean the ECB must continue to explain its reaction function, he said. "They have been pricing differently than how the Governing Council wanted them to in the past as well. Sometimes they were right, sometimes were wrong."