ECB Won’t Pre-Commit to Any Path for Interest Rates, Rehn Says

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(Bloomberg) — The European Central Bank isn’t pre-committing to any path for interest rates, Governing Council member Olli Rehn said.

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  • “It is important to see the forest for the trees,” Rehn said Tuesday in a statement. “Considerable progress has been made in bringing inflation down to target, especially since September 2023”

  • “We set our rates at each Governing Council meeting based on three factors: the inflation outlook, the dynamics of underlying inflation and the strength of monetary transmission”

  • “We are not pre-committing to any rate path”

  • “Assuming there are no new geopolitical or energy price shocks or unanticipated wage growth,” euro-area inflation “is expected to return to target during the year ahead, despite inflation’s downward path slowing somewhat in recent months,” the Bank of Finland says

  • “Financing conditions have been held tight in order to curb demand and to keep inflation expectations anchored,” it says

  • Read More: Lagarde Says ECB Cut Doesn’t Put Rate on ‘Linear Declining Path’

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