ECB's Rehn Sees No Clear Signs of Second-Round Inflation Effects
European Central Bank policymaker Olli Rehn stated that there are no clear signs of second-round inflation effects in the euro zone. He expressed support for using jointly-issued debt to strengthen the region's defense capabilities during an event in London.
Rehn noted that the labor market does not show the same level of tightness observed in 2022 following the invasion of Ukraine and the post-COVID crisis. The central bank continues to monitor labor market conditions and other data closely.
The policymaker emphasized that the ECB is watching the 'political scenery' in Europe ahead of elections in countries such as France next year. He stated that the bank maintains a toolbox of 'viable instruments' to ensure smooth transmission of monetary policy.