Rehn Sees No Second-Round Inflation Effects in Euro Zone

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 region's labour market as seen in 2022 after the invasion of Ukraine and the post-COVID crisis.

Rehn acknowledged that the central bank is closely monitoring the 'political scenery' in Europe ahead of elections next year, including in France. He emphasized that the ECB has a toolbox of 'viable instruments' to ensure smooth transmission of monetary policy.