ECB's Olli Rehn, speaks to Kauppalehti in an interview
- Some ECB governing council members think that keeping rates at current low levels into next year could be warranted
- In this environment of economic uncertainty and weaker growth, there are grounds for continuing with very stimulating monetary policy
- Says the big question now is 'whether the European economy is experiencing a short and temporary phase of slower growth or a longer phase'
He notes that if it is indeed a period of longer economic slowdown, then clearly a more accommodative monetary policy stance will be required. He also says that the ECB will know more about whether said uncertainties have started to intensify or ease before the 5 June meeting and that the central bank is prepared to take any decisions that are necessary in accordance to the situation.
Well, until they officially translate the headline into the monetary policy statement, this can only pass as sentiment for now. And that itself is not likely to lend much help for the euro as it will only amplify the damage if economic data continues to disappoint in the coming months.
