ECB’s Rehn: Time is Ripe to Cut Rates in June
27 May 2024
By Aurėja Bobelytė – VILNIUS (Econostream) – With inflation sustainably converging to the 2% target, interest rates should be cut in June, absent unexpected shocks, European Central Bank Governing Council member Olli Rehn said Monday.
Speaking in a conference in Tokyo, Rehn, who heads the Bank of Finland, said, ‘Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates’.
The ECB would continue to follow a data-dependent and meeting-by-meeting approach when making monetary policy decisions, he noted.
‘We will set our rates based on our analysis of the inflation outlook, the dynamics of underlying inflation and the strength of monetary transmission. And we are not pre-committing to any rate path’, Rehn said