Published by Global Banking & Finance Review®
Posted on September 12, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleECB's Olli Rehn warns of inflation risks from strong euro and energy prices, urging caution in monetary policy. Interest rates remain steady.
HELSINKI (Reuters) -The European Central Bank must be mindful of downside risks to inflation that stem from cheaper energy and a stronger euro, Finnish central bank chief Olli Rehn said on Friday.
"We need to avoid a situation where we deviate too much below or too much above our target," Rehn said.
The ECB left interest rates unchanged on Thursday and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
(Reporting by Essi Lehto and Elviira Luoma, editing by Louise Rasmussen)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve economic objectives.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.
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