ECB's Rehn: It is necessary for rates to move relatively quickly out of negative territory

• Need to continue gradual process of monetary policy normalisation
• This is also the indication given by many colleagues within the ECB
• Uncertainty related to future price developments has increased
• Uncertainty surrounding the ECB's macroeconomic projections is also currently very elevated
• Full speech

That's a big message coming from Rehn, who has been known to be among the doves previously. That said, he already did signal some hawkishness at the start of the month here so the recent narrative hasn't quite changed all too much.

The ECB may be talking up a big game for now but it remains to be seen how they will balance this battle against inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term with the backdrop of a flagging economy in the months ahead.