ECB’s Rehn: Subdued Growth Outlook Reinforces Case for September Rate Cut

30 August 2024

By David Barwick and Isabel Teles – TALLINN (Econostream) – European Central Bank Governing Council member Olli Rehn on Friday said that weak euro area economic activity would help justify further monetary easing at the Governing Council’s upcoming policy meeting.

During a panel discussion at Eesti Pank, Rehn, who heads the Bank of Finland, said, ‘And there are risks to the downside to our growth outlook. So, disinflation is in the process. At the same time, the growth outlook is more subdued.’

‘In my eyes, this reinforces the case for a rate cut in in September, and that's how I see the monetary policy stance in light of all this data and analysis we have for the moment’, he added.