ECB’s Vujcic says central bank can wait until September to discuss next rate move

European Central Bank (ECB) Governing Council member Boris Vujcic believes officials should wait until September before having an in-depth discussion about adjusting interest rates. 

Market participants price in the next reduction in borrowing costs by the regulator in autumn at the earliest. Some investors expect easing only at the December meeting. 

Vujcic says it is worth gaining more economic data and getting another quarterly forecast by the ECB before determining the course of monetary policy. New estimates of the EU’s economic outlook are due on September 10–11. The central bank currently expects the region's GDP to climb 0.9% in 2025, followed by an acceleration to 1.1% and 1.3% in the next two years. The ECB projects the inflation rate to average 2% in 2027. 

Vujcic emphasizes that the European regulator needs to monitor the development of Donald Trump's tariff policy. The central bank estimates that the region's economy will continue to grow even if the US imposes duties and the EU retaliates.