Published by Global Banking & Finance Review®
Posted on December 19, 2025
1 min readLast updated: January 20, 2026
ECB's Olli Rehn warns of uncertain euro area growth due to trade wars and geopolitical tensions, despite recent positive surprises.
HELSINKI, Dec 19 (Reuters) - The outlook for growth and inflation in the euro area remains highly uncertain due to trade wars and geopolitical tensions, European Central Bank policymaker Olli Rehn said on Friday.
"Despite recent positive growth surprises, the geopolitical situation and the ongoing trade war may still bring negative surprises for the eurozone," Rehn told reporters in Helsinki.
The central bank for the 20 countries that share the euro kept its policy rates steady on Thursday and revised upwards some of its growth and inflation projections.
(Reporting by Essi Lehto, editing by Jagoda Darlak and Terje Solsvik)
Monetary policy refers to the actions taken by a country's central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives, facilitating the exchange of capital and investment.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured as the percentage increase in real GDP.
The European Central Bank (ECB) is the central bank for the euro and is responsible for monetary policy within the Eurozone, aiming to maintain price stability and oversee the banking system.
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