ECB's Rehn Warns of Potential Long-Term Risks from Energy Shock

European Central Bank Governing Council member Olli Rehn has stated that the recent energy price shock from the Middle East has not yet affected wages or other prices. Speaking in Helsinki on Tuesday, Rehn emphasized the need for caution, noting that such impacts could develop slowly and go unnoticed for a time.

The Bank of Finland chief warned that the longer the Middle East conflict persists, the higher the risk becomes of broader economic effects due to rising energy costs. While the immediate effects have been limited, Rehn stressed that future spillover effects cannot be ruled out.