Central Banks
It’s Action Time for ECB With Weak Euro a Key Point, Rehn Says
- ‘Significant’ hike in interest rates needed in September
- Too early to publicly discuss quantitative tightening
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The European Central Bank must act forcefully to contain record inflation and keep expectations for future price growth anchored as the weak euro exacerbates a surge in energy costs, according to Governing Council member Olli Rehn.
It’s important for policy makers to continue with a “consistent and orderly” normalization of monetary policy, Rehn, who heads the Finnish central bank, told Bloomberg Television at the Federal Reserve’s annual Jackson Hole gathering. His comments follow remarks by Executive Board member Isabel Schnabel and France’s Francois Villeroy de Galhau, who both highlighted the need for a determined response -- at the ECB’s upcoming meeting and beyond.