ECB's Rehn Dismisses Second-Round Inflation Concerns

European Central Bank policymaker Olli Rehn stated that there are no clear signs of second-round inflation effects in the euro zone. Speaking at an event in London, he emphasized that the labour market is not as tight as it was in 2022 after the invasion of Ukraine and the post-COVID crisis.

Rehn stressed that the central bank closely monitors data and 'political scenery' in Europe ahead of elections next year. He also mentioned that they have a toolbox of 'viable instruments' to ensure smooth transmission of monetary policy.