European Central Bank
"We cannot afford to be complacent in light of this inflationary pressure," Rehn stated in an interview with the Financial Times, discussing the effects of the spike in energy costs resulting from the conflict in the Middle East. "We must not permit a crisis in the supply of goods and services in Europe."
The initial report from the European Union's statistics agency for August, released on Tuesday, indicated that inflation in the eurozone rose to 3.3% year-on-year in August, up from 2.9% in July. Inflation in August reached its peak since September 2023.
Rehn's remarks are expected to bolster investors' confidence that the ECB will increase key interest rates during its meeting on September 9-10, according to the FT. The deposit rate set by the ECB is presently at 2.25%, and the market is optimistic about a 25 basis point increase this month.
Rehn's remarks indicate a shift in the Finnish central banker's position, which until now has prioritized concerns about economic growth over inflation. The newspaper points out that this may suggest increasing backing for stricter monetary policy at the ECB.
source: ft.com
The initial report from the European Union's statistics agency for August, released on Tuesday, indicated that inflation in the eurozone rose to 3.3% year-on-year in August, up from 2.9% in July. Inflation in August reached its peak since September 2023.
Rehn's remarks are expected to bolster investors' confidence that the ECB will increase key interest rates during its meeting on September 9-10, according to the FT. The deposit rate set by the ECB is presently at 2.25%, and the market is optimistic about a 25 basis point increase this month.
Rehn's remarks indicate a shift in the Finnish central banker's position, which until now has prioritized concerns about economic growth over inflation. The newspaper points out that this may suggest increasing backing for stricter monetary policy at the ECB.
source: ft.com
