ECB’s Rehn: ‘Speed and Scale of the Rate Cuts Will Be Determined in Each Meeting’

17 December 2024

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Olli Rehn on Tuesday said that further ECB interest rate cuts would depend on the data available at each monetary policy meeting.

According to a statement issued by the Bank of Finland, which he heads, Rehn said, ‘The direction of our monetary policy is now clear. The speed and scale of the rate cuts will be determined in each meeting on the basis of incoming data and comprehensive analysis.’

Rehn warned of the economic threat posed by a trade war but suggested that Europe not shy away if challenged.

‘Trade and security policies have rarely been so intertwined as they are in Europe currently’, he said. ‘The last thing we need is a trade conflict between allies. Negotiation is preferable, and the EU’s negotiating position can be strengthened by demonstrating in advance that it is ready to take countermeasures if the United States threatens Europe with higher tariffs.’