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European Central Bank Governor Vujcic: Predictions point to further interest rate cuts.
Boris Vujcic, a member of the European Central Bank's Governing Council, believes that the central bank is likely to lower borrowing costs again. "If the data released in the future – we say we rely on data – aligns with our predictions, then we can definitely continue to lower interest rates," the Croatian central bank governor reiterated on Tuesday. "The direction of predictions indicates further declines in interest rates." The European Central Bank has cut interest rates four times this year, bringing the deposit rate down to 3%. Economists expect that policymakers will continue to reduce rates by 25 basis points until they reach 2% in June. When asked how far the European Central Bank might go with rate cuts, Vujcic said.
Who will implement the reserve requirement ratio cut and interest rate cut first as expectations rise to the maximum? Industry predictions suggest that the likelihood of a reserve requirement ratio cut by the end of the year is relatively high, while an i
① Currently, it has entered the observation period for policy effects, and the signals for reserve requirement ratio and interest rate cuts are unclear. The probability of an interest rate cut this week is low, but the likelihood of a reserve requirement cut before the end of the year is higher, and the interest rate cut may have to wait until 2025 for a suitable opportunity; ② A domestic interest rate cut may further increase short-term Exchange Rates pressure, and the probability of a short-term reserve requirement cut is greater than that of an interest rate cut. Recently, the Renminbi's exchange rate against the US dollar has declined, reflecting more of a passive depreciation nature.
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