ECB’s Rehn warned that underlying inflation pressures are only falling gradually

Olli Rehn is the Finnish central bank governor and thus a member of the governing council of the European Central Bank.

From a press release issued Tuesday:

  • “The rise in consumer prices in the euro area is slowing, but not to the extent desired,”
  • “Inflation excluding energy and food is falling only gradually.”

Rehn said that a pullback in this core inflation is a prerequisite for pausing rate hikes

  • “I can say that I consider core inflation a very important, essential yardstick in the overall judgment of monetary-policy making,”
  • “Its important that core inflation is on a steady and sustained decline.”

Rehn emphasised that:

  • “We will bring interest rates to levels sufficiently restrictive to achieve a timely return of inflation to the 2% medium-term target and keep them there as long as necessary”


The July ECB meeting will bring the Bank’s next rate hike:

This article was written by Eamonn Sheridan at Source