Home›Forex›Major Pairs›ECB’s Rehn says higher energy prices near adverse infl…

ECB’s Rehn says higher energy prices near adverse inflation scenario

In European trade, EUR/USD was up 0.2% to about 1.1265 after Rehn’s comments.

Reported · Written up by our desk · Major Pairs

European Central Bank official Olli Rehn said elevated energy prices are bringing the ECB closer to its adverse scenario for inflation, according to FXStreet.

Rehn said ECB projections face very high and pervasive uncertainty, and noted that long-term interest rates rising could slow growth and reduce the pass-through of an energy shock to prices and wages, FXStreet reported.

The ECB official also pointed to uncertainty around a possible sudden reversal in market sentiment tied to AI, while FXStreet said the Euro strengthened versus the US Dollar following his remarks.

FXStreet reported that as of the time of writing, EUR/USD was up 0.2% to near 1.1265.

Latest closeEUR/USD 1.133 ▼0.3%

More like this

Sources