ECB's Vujcic sees slight positive economic growth in Q2, services support growth and labour market is still tight

• Inflation risks are elevated but more balanced.


• Extreme weather conditions as we speak can affect food prices.


• Does not expect clear announcement on terminal rate, discussions to continue.


• Will be data dependent over coming months and quarters.


• Will be ready to tighten policy further or ease it as needed.


• Latest reading is maybe pointing to services sector softening, September meeting is very open.


• He puts more weight on observables, like inflation data and real activity and lending data.


• China is a risk to the GDP outlook.


• Slowing down pace of rate hikes is certainly a possibility.


• Even if ECB pauses, we will say we can resume hiking.


• There is no discussion of outright APP bond sales.


• Not unimaginable to discuss bringing forward the end of PEPP reinvestment. 

12 Jul 2023 - 14:15- Fixed IncomeData- Source: Newswires