- Need to continue gradual process of monetary policy normalisation
- This is also the indication given by many colleagues within the ECB
- Uncertainty related to future price developments has increased
- Uncertainty surrounding the ECB's macroeconomic projections is also currently very elevated
- Full speech
That's a big message coming from Rehn, who has been known to be among the doves previously. That said, he already did signal some hawkishness at the start of the month here so the recent narrative hasn't quite changed all too much.
The ECB may be talking up a big game for now but it remains to be seen how they will balance this battle against inflation with the backdrop of a flagging economy in the months ahead.