Boris Vujčić, ECB Vice-President, discusses the impact of rising energy prices, inflation outlook, financial stability, AI, and banking union ahead of upcoming ECB meetings, in an interview conducted on September 16, 2026.
In an interview conducted on September 16, 2026, Boris Vujčić, Vice-President of the European Central Bank (ECB), discussed recent developments affecting monetary policy and the economy.
He noted that energy prices have continued to rise since the ECB’s latest projections, influencing market expectations for interest rate paths. The ECB does not provide forward guidance and considers a broad set of data when making decisions, emphasizing meeting-by-meeting assessment.
Regarding market pricing of future rate hikes, Vujčić highlighted the importance of considering broader economic relationships, including potential impacts on household incomes and GDP if inflation remains high.
He addressed the risks associated with low gas storage levels in Europe, the potential for a winter energy shock, and the effects of weather and El Niño on food inflation, which is projected to peak at 3.4% in Q3 2027.
He emphasized the resilience of the euro area economy to recent tightening measures, supported by exports and private consumption, and noted that monetary transmission is a gradual process.
On policy stance, Vujčić prefers assessing appropriate interest rate levels rather than focusing on labels like “restrictive”. He discussed the rise in sovereign bond yields, attributing it to multiple factors, and stated that recent yield increases do not threaten financial stability.
Regarding AI, he acknowledged uncertainty about its productivity impact but noted its potential for significant economic transformation. He also discussed the rapid quality improvement of Chinese manufacturing and its implications for European firms.
Vujčić expressed support for raising minimum reserve requirements as a tool to sterilize excess liquidity, favoring it over tiering or fees, and emphasized the need for a fully integrated European financial market to enhance banking competitiveness.
He concluded by stressing the importance of completing the banking union and reducing market fragmentation to improve the transmission of monetary policy across the euro area, ahead of a meeting with finance ministers in Dublin.
