Defense Spending Won’t Necessarily Slow ECB Rate Cuts, Rehn Says

A ramp-up in defense spending doesn’t have to lead to slower interest-rate reductions by the European Central Bank, according to Governing Council member Olli Rehn.

The Finish central-bank chief said higher military outlays won’t “necessarily” put a brake on monetary easing, adding to earlier remarks that he and his colleagues “will maintain complete freedom of action” amid high uncertainty.