Finnish central bank governor and member of the governing council of the European Central Bank Olli Rehn spoke over the weekend in an interview at Jackson Hole.
Like Latvian central bank governor, and fellow Governing Council member of the European Central Bank, Martins Kazaks, Rehn is concerned about the inflationary impact of the falling euro.
- “Certainly we are monitoring the exchange rate”
- “This indirect channel is important - we are monitoring it and are looking at it as one indicator"
- “It’s already a significant consideration” in setting monetary policy"
On the upcoming ECB policy meeting and rate hike:
- “The reality is that we have excessively high inflation globally, also in Europe -- that’s why it’s action time”
- “The next step will be a significant move in September, depending on the incoming data and the inflation outlook.”
Rehn also remarked on the slowing eurozone economy and energy crisis:
- “Monetary policy is now facing the dual dilemma of on the one hand maintaining inflation expectations anchored, and on the other hand avoiding that we would push the economy into a recession,”
- “We have a severe energy crisis in Europe”
- “it’s quite likely that the euro-zone economy is slowing down. It’s slowing down as we speak.”
Info via Bloomberg (Rehn spoke with Bloomberg TV)
