No Clear Second-Round Inflation Effects in Euro Zone, Says ECB's Rehn

Olli Rehn, a member of the European Central Bank's policy-making body, stated that the euro area has not shown obvious evidence of second-round inflation consequences. Speaking in London, he noted that the euro area's labour market lacks the degree of tightness witnessed in 2022 after Russia's invasion of Ukraine and the post-COVID crisis.

Rehn emphasized that the ECB closely monitors labour market conditions and other data to make informed decisions. He also mentioned that the central bank is monitoring the political landscape across Europe before elections in nations including France next year.

The policymaker stressed that the institution retains a set of viable tools to guarantee the smooth transmission of monetary policy. Regarding inflation, Rehn suggested that the central bank was well-positioned in light of recent shocks, indicating a shift from earlier periods.