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ECB official Rehn stresses keeping inflation expectations anchored

Rehn attributed de-anchoring to higher energy prices tied to supply strains after the US-Iran deadlock over the Strait of Hormuz, and said there were no clear second-round effects.

Reported · Written up by our desk · Central Banks

European Central Bank official Olli Rehn said it is essential to keep inflation expectations anchored, according to a written copy of a speech published during the European trading session. The remarks came as global inflation projections have been de-anchored amid elevated energy prices and squeezed supply following the United States, Iran deadlock over the Strait of Hormuz.

Rehn said there were no clear signs of second-round effects and that wage growth and the wage outlook have remained moderate so far. The article also noted that there was no major reaction in the euro following the comments.

As of the time of publication, EUR/USD was trading about 0.2% higher, marginally below 1.1600. The ECB sets euro-area interest rates as its main policy tool, with a mandate to keep inflation around 2%.

Latest closeEUR/USD 1.157 ▲0.4%

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