ECB Governing Council member Rehn warns that the inflation outlook may face downside risks
2025-10-08 06:39:42
Olli Rehn, the ECB's governing board member, warned that consumer price growth was likely to slow to below the 2 per cent target. "We are now broadly on target - in that sense, things are good," Finland's central bank governor told the Karon Grilli podcast. "However, downside risks to inflation remain in the coming years - due to factors such as a stronger euro and stabilising wage and services inflation." After eight 25 basis point rate cuts in a year, officials are weighing the need for further easing. Most appear to agree that keeping deposit rates at 2 per cent is acceptable as long as there are no new shocks, while others insist that further cuts should not be ruled out.
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