Central Banks
ECB’s Rehn Says Weak Growth May Boost Disinflation Pressures
- A soft landing seems plausible in the euro area, he says
- Finnish central-bank chief speaks at event in Washington
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An increasingly dire euro-area economy might exacerbate slowing consumer-price growth, according to European Central Bank Governing Council member Olli Rehn.
“Disinflation in the euro area is well on track,” the Finnish central-bank chief said Tuesday in Washington. “The growth outlook has weakened quite clearly in the past few months, which could also increase disinflationary pressures,” he said, adding that “we have to be mindful of — possibly also concerned about — the possibility of inflation undershooting.”