HELSINKI (Reuters) – The prospects of the European Central Bank cutting interest rates in June assume that there are no further setbacks in the geopolitical situation affecting energy prices and therefore inflation.
ECB advisor Olli Rehn said this.
Last week the ECB opened up about the possibility of a rate cut in June and Finnish central bank governor Rehn stressed that the prerequisite for such a decision is that inflation slows as expected.
“This assumes that there are no further setbacks, for example in the geopolitical situation and therefore in energy prices,” he said in a statement, referring to the Middle East and Russia.
Some of Rehn’s colleagues have already spoken out in favor of further rate cuts after June, but Rehn made no such comments.
“The ECB takes its interest rate decisions meeting after meeting in light of the most recent information, without tying its hands in advance to any specific interest rate,” he added.
(Translated by Chiara Scarciglia, editing by Stefano Bernabei)
