untitled design

Olli Rehn is calling for a faster rise in ECB interest rates

The central banker and member of the Board of the ECB Olli Rehn sounded the alarm bell for the effects of the Russia-Ukraine war on the economic recovery, calling for the acceleration of the bank’s interest rate increase.

In particular, speaking to CNBC, Mr Rehn said: “We are in the middle of nowhere. On the one hand, we must ensure that the recovery continues and on the other hand, we must prevent higher inflation expectations and the spread of the market.” work “.

“In other words, we must avoid the side effects. Therefore, in my view, we must move relatively quickly to zero (interest rates) and continue the gradual process of normalizing our monetary policy,” he added.

He clarified that all this presupposes that “Russia’s war in Ukraine will not escalate and will not intensify, something that could derail all forecasts and the economic recovery itself.”

“Finland is moving towards NATO membership”

At the same time, commenting on the forthcoming decisions of his country, Finland, but also of Sweden, for submitting applications for NATO membership, Olli Rehn estimated that Helsinki will take this step.

“The crucial factor here is, of course, the aggressive and unpredictable behavior of Russia and its leadership and the war it is waging in Ukraine. But at the same time, there is also the broader question of Russia’s intention to re-create spheres of influence in Europe and “It has a place in 21st century Europe,” Rehn told CNBC.

“So these are the reasons why the Finnish people, and I think more and more the Swedish people, are in favor of defensive alignment, that is, their membership in NATO,” he continued.

Concluding, Mr. Rehn said that “my assessment is that the leadership of the country (Finland) and the parliament are moving towards NATO membership.”

Source: Capital

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular