ECB’s Rehn: ‘Quite Concerned’ About Extended Inflation Undershoot

2 July 2025

ECB’s Rehn: ‘Quite Concerned’ About Extended Inflation Undershoot
Olli Rehn, governor of the Bank of Finland, at the European Central Bank Forum on Central Banking in Sintra, Portugal on July 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By Marta Vilar – SINTRA, Portugal (Econostream) – European Central Bank Governing Council member Olli Rehn said on Wednesday that he was worried about persistently undershooting the ECB's inflation target. 

In an interview with Bloomberg TV on the margins of the ECB Forum on Central Banking 2025 in Sintra, Portugal, Rehn, who heads the Bank of Finland, said that he was ‘quite concerned about inflation being below target for an extended period of time.’ 

Despite inflation risks being two-sided, Rehn was more worried about a potential undershoot. 

‘We have to make sure that will not become persistent and become embedded in inflation expectations’, he said. 

 

Related articles: