It’s better to adjust monetary policy gradually to the current uncertain environment, said today the official of the European Central Bank and central banker of Finland Olli Rehn.
“In an uncertain situation – I am also referring to geopolitical tensions and their potential impact on energy prices and development – it is better to be careful than to regret, as the old saying goes, or to take it step by step and normalize it. monetary policy, “Rehn said in Helsinki.
Rehn’s remarks echoed comments by ECB President Christine Lagarde, who said on Monday that any monetary adjustment would be phased in.
Speaking at the event marking the completion of two decades of common currency in the eurozone, Rehn stressed the importance of the euro in strengthening unity within the European Union amid geopolitical turmoil leading to rising energy prices and inflation. Rehn said the ECB’s board believes there is a risk that inflation will accelerate faster than expected.
“The ECB Board is working with all its tools to ensure that inflation is stabilized at the 2% target in the medium term,” Rehn said. However, he reminded that energy prices are beyond the scope of the influence of monetary policy. He said he believed energy prices would remain high for a number of reasons, including low reserves and the need to replenish them as the high demand caused by low temperatures would be reduced in Europe.
Source: AMPE
Source: Capital
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