ECB’s Rehn: Risks, inflation outlook support rate cut

Downside risks have intensified since March, strengthening the case for a rate cut at the European Central Bank’s (ECB) upcoming April meeting, ECB policymaker Olli Rehn said on Wednesday.

In a speech published by the Bank of Finland and cited by Reuters, Rehn noted that many of the risks identified in March have either materialised or are emerging, stating that, based on inflation and growth assessments, the case for further rate cuts has “clearly strengthened”.

Rehn had previously advocated for a rate reduction if inflation aligns with projections, and he reiterated that the outlook for growth has worsened due to the ongoing trade war. With inflation stabilising near target, he said, further easing could help keep price growth on track.

Attribution: Reuters
Subediting: M. S. Salama