ECB's Vujcic says the definition of medium term depends on the shock the ECB faces

The comment from ECB's Vujcic highlights the central bank's adaptable approach to defining the medium-term outlook based on prevailing economic shocks.

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ECB's Vujcic says the definition of medium term depends on the shock the ECB faces

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This suggests that any policy decisions may be more reactive and fluid than expected, influencing market perceptions of rate trajectories and potentially affecting EUR and fixed income assets. Traders should watch for shifts in sentiment regarding future ECB guidance as economic conditions evolve.

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