ECB’s Välimäki: Any Additional Delay in Achieving the Target Cannot Be Considered Acceptable

3 October 2023

By David Barwick – FRANKFURT (Econostream) – Any further delay the European Central Bank faces in restoring price stability would be unacceptable, Governing Council member Tuomas Välimäki said on Tuesday.

In a statement on the webpage of the Bank of Finland, board member Välimäki, who is occupying the Governing Council position of Governor Olli Rehn whilst the latter runs as a candidate in Finland’s 2024 presidential election, said that ‘the key policy rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to our target.’

‘But taking into account the risks surrounding the inflation path, this does not necessarily mean there will be no more interest rate increases’, he continued. ‘Because inflation is staying above the target for this long, any additional delay in achieving the target cannot be considered acceptable.’

In evaluating price prospects, the ECB would take into consideration underlying inflation and policy transmission strength, he said.