Boris Vujčić, Governor of the Croatian National Bank, warns ECB to avoid disproportionate reactions to temporary fall in inflation below 2%

<p>Boris Vujčić, Governor of the National Bank of Croatia and member of the ECB's Governing Council, emphasized that fluctuations in euro area inflation should not prompt aggressive monetary policy measures. He believes that a minor deviation below the 2% target is normal and that prices could return on an upward trajectory due to economic recovery. He also said the appreciation of the euro should not have significant effects on prices unless it becomes a long-term trend.