FILE PHOTO: Governor of the Bank of Finland, Olli Rehn attends a Reuters Newsmaker event in London, Britain, May 29, 2019. REUTERS/Hannah McKay
February 10, 2022
HELSINKI (Reuters) -It is better to adjust euro zone monetary policy gradually in the current uncertain environment, European Central Bank policymaker and Finnish central bank chief Olli Rehn said on Thursday.
“In an uncertain situation – I also refer to the remaining geopolitical tension and its possible implications on energy prices and growth – it is better to watch than be sorry as the old saying goes, or to progress gradually and step by step in normalising the monetary policy,” Rehn said in Helsinki.
Rehn echoed the words https://www.reuters.com/world/europe/euro-zone-inflation-could-subside-before-becoming-entrenched-lagarde-2022-02-07 of the ECB’s President Christine Lagarde who on Monday said that any adjustment to monetary policy would be gradual.
Speaking at an event he organised to mark two decades of common currency in the euro zone, Rehn highlighted the euro’s importance in strengthening unity within the European Union amid geopolitical turmoil that causes energy prices to rise and inflation to speed up.
Rehn said the ECB board had estimated that there were risks of inflation speeding up faster than expected.
“The ECB board works with all its tools to ensure that inflation will stabilize at its 2% target on medium term,” Rehn said.
(Reporting by Anne Kauranen; Editing by Catherine Evans)
Source: One America News Network
