ECB Rehn Sees No Inflation Risk and Backs Defence Debt
European Central Bank official Olli Rehn stated there are no clear signs of second-round inflation effects in the euro zone. He also expressed support for using jointly-issued debt to enhance the region's defence capabilities while monitoring political developments.
Insights:
European Central Bank policymaker Olli Rehn said on Thursday afternoon that the euro zone faces no clear signs of second-round inflation. The assessment contrasts with the severe labor market pressures witnessed following the 2022 invasion of Ukraine. The central bank continues monitoring regional political shifts, including upcoming elections in France.
