Economics
Rehn Says ECB Must Tighten Policy Gradually to Avoid Shocks
- Dynamic between inflation and economic slack has changed
- Official sees open questions on timing, order of policy action
This article is for subscribers only.
The European Central Bank should normalize its monetary policy at a measured pace to prevent any “unforeseen negative effects,” according to Governing Council Member Olli Rehn.
The euro area still needs a stance supportive of employment and growth to ensure inflation “remains on a path consistent with the price-stability objective,” Rehn said in a report published by the Bank of Finland on Thursday.