ECBs Rehn is speaking and says:
- inflation is converging towards ECBs 2% target
- monetary restraint is continuing to reduce inflation and impact the real economy.
- Although ECB rates are at levels that are making substantial contributions to ongoing disinflation process, we no longer see need to maintain them at current levels for a long duration.
- Provided we are confident inflation will continue converging to our 2% target in a sustained way, the time will be right in June to start easing the monetary policy stance and to cut rates.
- This assumes there will be no further setbacks in the geopolitical situation and thus in energy prices.
