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    Home > Headlines > Euro zone disinflation on track but growth at risk, ECB's Rehn says
    Headlines

    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 read

    Last updated: January 23, 2026

    Euro zone disinflation on track but growth at risk, ECB's Rehn says - Headlines news and analysis from Global Banking & Finance Review
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    Quick Summary

    The euro zone's inflation target is on track, but growth is at risk due to global trade tensions, ECB's Olli Rehn warns.

    Euro Zone Inflation Progresses, Growth Concerns Persist: ECB

    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)

    Key Takeaways

    • •Euro zone's inflation target of 2% is on track.
    • •Growth environment is deteriorating in the euro zone.
    • •Global trade war poses significant risk to growth.
    • •ECB maintains flexibility in monetary policy.
    • •Olli Rehn emphasizes adjusting rates to meet inflation goals.

    Frequently Asked Questions about Euro zone disinflation on track but growth at risk, ECB's Rehn says

    1What is the main topic?

    The main topic is the euro zone's progress in achieving its inflation target and the associated growth risks.

    2What risks are affecting euro zone growth?

    A global trade war is creating significant risks to the euro zone's growth outlook.

    3How is the ECB responding to economic conditions?

    The ECB is maintaining flexibility in monetary policy and will adjust rates to achieve a 2% inflation target.

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