Euro zone disinflation on track but growth at risk, ECB's Rehn says
Published by Global Banking & Finance Review®
Posted on May 9, 2025
1 min readLast updated: January 23, 2026
Published by Global Banking & Finance Review®
Posted on May 9, 2025
1 min readLast updated: January 23, 2026
The euro zone's inflation target is on track, but growth is at risk due to global trade tensions, ECB's Olli Rehn warns.
FRANKFURT (Reuters) -The euro zone's fight to bring inflation back to the 2% target is on track but the growth environment is deteriorating, with a global trade war creating a significant risk in the outlook, Finnish central bank chief Olli Rehn said on Friday.
"Given the pervasive uncertainty, the Governing Council is maintaining full freedom of action in monetary policy," Rehn told a conference in Helsinki. "We will adjust our rates to bring inflation to 2% in the medium term – just as our strategy tells us to do."
(Reporting by Balazs Koranyi; Editing by Aidan Lewis)
The main topic is the euro zone's progress in achieving its inflation target and the associated growth risks.
A global trade war is creating significant risks to the euro zone's growth outlook.
The ECB is maintaining flexibility in monetary policy and will adjust rates to achieve a 2% inflation target.
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