Key facts
- Olli Rehn stated there are no clear signs of second-round inflation effects in the euro zone.
- Rehn supports using jointly-issued debt to bolster Europe's defense capabilities.
- He noted that the euro zone's labor market tightness is not comparable to 2022 levels.
- Rehn said the ECB is monitoring the political landscape in Europe ahead of upcoming elections.
- The ECB has a toolbox of instruments to ensure smooth monetary policy transmission.
European Central Bank policymaker Olli Rehn said on Thursday that there were no clear signs of second-round inflation effects in the euro zone. He also expressed support for the use of jointly-issued debt to enhance the region's defense capabilities.
Speaking at an event in London, Rehn noted that the labor market tightness in the euro zone is not currently as pronounced as it was in 2022, following Ukraine's invasion and the post-COVID crisis. However, he stated that the central bank is closely monitoring this and other data.
Rehn also mentioned that the ECB is paying close attention to the political developments in Europe, particularly in anticipation of elections in countries like France next year. He emphasized that the bank possesses a range of "viable instruments" to ensure the smooth transmission of monetary policy.