ECB: Gradual Interest Rate Cuts with Caution

Leading economist of the European Central Bank (ECB) Nenad Vujcic has expressed his view that gradual interest rate cuts may be feasible in the near future, but he urged caution in this regard. According to him, while the Eurozone economy shows signs of weakening, it is crucial to closely monitor potential risks that could impact financial stability and inflation.

Vujcic noted that the current situation requires prudence, as a sharp reduction in rates could lead to adverse effects on economic growth and stable price levels. He emphasized the need to maintain a balance between economic support and inflation control to avoid situations that could negatively impact the financial system, including heightened market volatility.

The economist added that the ECB would rely on forecasts and economic data to make measured decisions, and only in the presence of clear signals of economic stabilization could a reduction in rates be considered. Vujcic underscored that uncertainty remains in the international economic environment, which also necessitates a cautious approach to monetary policy.

Nevertheless, the ECB continues to monitor the situation and is prepared for necessary changes in its policy if justified by economic realities. Rising inflation and market instability remain a focal point for the regulator, so any further actions will be carefully contemplated.

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