ECB Governing Council member Rehn warns: Inflation outlook may face downside risks

Jinse Finance reported that European Central Bank Governing Council member Olli Rehn warned that consumer price growth could slow to below the 2% target. "At present, we have roughly reached this target—in that sense, the current situation is good," the Governor of the Bank of Finland told the Karon Grilli podcast. "However, in the coming years, downside risks to inflation still exist—due to factors such as a stronger euro, and the stabilization of wage and service inflation." After eight consecutive 25 basis point rate cuts within a year, officials are weighing whether further policy easing is necessary. Most officials seem to believe that as long as there are no new shocks, it is acceptable to keep the deposit rate at 2%, while others insist that the possibility of further rate cuts should not be ruled out.