Vujcic: I Expect the ECB to Continue Gradually Reducing Rates Instead of Taking a Bigger Step in December

Forex - According to Boris Vujcic, a member of the ECB Governing Council and the Governor of the Croatian National Bank, the European Central Bank will continue to gradually reduce interest rates instead of making a larger move at its meeting next week.

Considered a moderate hawk, Vujcic downplayed the possibility of any major surprises in an interview with POLITICO, stating, "I don’t think it will be such a difficult decision in December."

Vujcic provided the strongest reassurance to date that there could be serious debate among Governing Council members regarding the justification for a jumbo cut. "I have seen the Governing Council on the same page, and I really don’t believe it will be very different in the upcoming meetings," he said.

The ECB's key deposit rate currently stands at 3.25%, following three cuts of 0.25 percentage points made this year. Vujcic acknowledged, however, that as ECB policy becomes more supportive, things could become more contentious.