ECB’s Rehn: ‘It Makes Sense to Continue Cutting Rates’

13 January 2025

ECB’s Rehn: ‘It Makes Sense to Continue Cutting Rates’
Olli Rehn, governor of the Bank of Finland, at the European Central Bank Forum on Central Banking in Sintra on July 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Olli Rehn on Monday endorsed further policy easing, but that the magnitude and pace of rate cuts would depend on new data.

In an interview with Bloomberg TV, Rehn, who heads the Bank of Finland, said that given that disinflation was on track and that economic growth was now weaker, 'it makes sense to continue rate cuts.'

‘The direction is clear’, he said, ‘the scale and speed of rate cuts depends upon the incoming data.’

The ECB was not ‘the 13th federal district of the Federal Reserve System’ and it took its own decisions based on its own mandate, which is focused on price stability, according to Rehn.

‘I would say at the latest by midsummer we should have left restrictive territory,’ he said.

 

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