ECB policymaker Olli Rehn signals that while markets have eased some pressure, further rate hikes remain on the table if inflation does not sustainably fall
Executive summary: Olli Rehn, head of Finland's central bank, said in a podcast that although markets have taken some of the workload off the ECB, it is too early to exclude further interest rate hikes, even if inflation shows a short‑term decline. The statement influences ECB policy expectations, affecting eurozone borrowing costs, bond yields, and currency markets as investors gauge the likelihood of continued tightening. Olli Rehn (Finnish central bank), European Central Bank, eurozone financial markets The ECB will watch upcoming inflation releases; if price pressures persist, a rate hike at the next policy meeting remains possible, otherwise a pause may be signaled.
In a Handelsblatt podcast, Finnish central bank chief Olli Rehn warned that it is still premature to rule out additional ECB tightening, even should inflation temporarily retreat. He noted that financial markets have already absorbed part of the policy burden, but the central bank will continue to monitor price developments closely. The remarks underscore the ECB’s cautious stance amid mixed inflation data and market expectations of a potential pause.
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