ECB's Vujcic: Shouldn't rush start of rate-cutting cycle

European Central Bank (ECB) Governing Council member Boris Vujcic said on Tuesday that the ECB shouldn't rush lowering key rates, as reported by Reuters.

Approaching the rate reduction in the right way will be important for the ECB's credibility, Vujcic argued and added that there still is a lot of resilience in services inflation and wages. He also said that the equilibrium level of ECB rates will likely be higher than it looked some years ago.

Market reaction

EUR/USD showed no immediate reaction to these comments and the pair was last seen trading virtually unchanged on the day at around 1.0740.