Rehn: No Second-Round Inflation Signs as ECB Backs Joint Debt for Defence

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

Rehn also expressed support for the use of jointly-issued debt to strengthen the region's defence capabilities. He stated that the bank has a 'toolbox of viable instruments' to ensure smooth transmission of monetary policy, adding that they are closely monitoring the 'political scenery' in Europe ahead of elections in France next year.