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ECB’s Rehn Warns of Slowing Inflation Risks Amid Steady Eurozone Growth
ECB’s Rehn Warns of Slowing Inflation Risks Amid Steady Eurozone Growth
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BTCCSquare news:
Olli Rehn, Governor of the Bank of Finland and ECB Governing Council member, has urged colleagues to address the risks of inflation falling below the 2% target. Declining energy prices, subdued wage growth, and a stronger euro could push inflation significantly lower. "This risk should not be taken lightly," Rehn told Helsingin Sanomat, though he acknowledged upside inflation risks remain.
With inflation nearing the ECB's target, economists anticipate no abrupt changes to the deposit rate, which has already been cut eight times this cycle from 4% to 2%. Rehn separately cautioned about stock market fragility, even as the eurozone economy shows resilience against global trade tensions.
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