ECB’s Rehn: June Cut ‘Appropriate’ If Data Confirm Stabilisation of Inflation, Weak Growth

23 May 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Olli Rehn said on Friday that the ECB should ease monetary policy further next month if data confirm the baseline scenario of weak growth and stable inflation.

In a joint interview with Bank of Greece Governor Yannis Stournaras with Greek newspaper Kathimerini, Rehn, who heads the Bank of Finland, said that ‘if the incoming data and the macroeconomic analysis confirm the current outlook for stabilisation of inflation and somewhat subdued growth, the appropriate response in June would be to continue monetary easing and cut interest rates.’

The ECB should stick to its data-dependent, meeting-by-meeting approach to policymaking, especially given the uncertain environment coming from geopolitics and trade tensions, he said.

Related articles:

• ECB’s Rehn: Should Cut Rates in June if Projections Show Weaker Growth and Disinflation
• ECB’s Rehn: Neutral Rate Should Not Be a Constrain in Cutting Rates Further
• ECB’s Rehn: If June Forecasts Confirm Return to 2%, Would Be Proper to Cut Rates Again