Central Banks
ECB’s Rehn Sees Bets for Two More Cuts in 2024 as Reasonable
- Deposit rate could be reduced to as low as 2.25% next year
- Finnish central-bank governor speaks in interview in Helsinki
Olli Rehn at the central bank in Helsinki, on June 25.
Photographer: Roni Rekomaa/BloombergThis article is for subscribers only.
Investor expectations for the European Central Bank to loosen monetary policy twice more this year — and bring borrowing costs to as low as 2.25% in 2025 — are fair, according to Governing Council member Olli Rehn.
In some of the most explicit remarks from an ECB policymaker on the path for interest rates, the Finnish central-bank chief also said that while officials must ensure inflation returns to 2%, they shouldn’t overly dampen economic activity.