Reported by Consejeros Editorial Team
The Croatian economist Boris Vujčić, a central banker who advocates keeping inflation under control through higher interest rates, takes up the post of Vice-President of the European Central Bank (ECB), replacing Spain’s Luis de Guindos, for a non-renewable eight-year term.
Almost three and a half years after the introduction of the euro in Croatia, Vujčić joins the ECB’s Executive Board at a time when the institution is expected to raise interest rates to tackle rising inflation as a result of the war in Iran.
Vujčić is known for being a moderate hawk on monetary policy, that is to say an advocate of keeping inflation low through higher interest rates.
Markets and analysts expect that the ECB will raise its interest rate on bank deposits, currently at 2%, moderately at its meeting on 11 June.
The Governing Council preferred to wait until the end of April to gather more information before raising interest rates to curb the inflation triggered by rising energy costs due to the war in Iran.
All members supported the decision to keep interest rates unchanged because there was no acute urgency for a rise, but some members would not have opposed a hike at that time had the option been on the table.
Vujčić has been a member of the ECB Governing Council for years as Governor of the Bank of Croatia and therefore knows the institution well.
With his appointment, a representative from a small country once again takes up the vice-presidency of the ECB, a position previously held by Spain (Luis de Guindos 2018–2026), Portugal (Vítor Constâncio 2010–2018), Greece (Lukas Papademos 2002–2010) and France (Christian Noyer 1998–2002).
De Guindos recently wished Vujcic “good luck, because difficulties and new developments will be there”.
