Finance

ECB must be mindful of downside risks to inflation, Rehn says

Published by Global Banking & Finance Review

Posted on September 12, 2025

1 min read

· Last updated: January 21, 2026

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ECB must be mindful of downside risks to inflation, Rehn says
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HELSINKI (Reuters) -The European Central Bank must be mindful of downside risks to inflation that stem from cheaper energy and a stronger euro, Finnish central bank chief Olli Rehn said on Friday. "We

ECB Cautions on Inflation Risks Amid Strong Euro and Energy Prices

ECB's Inflation Concerns

HELSINKI (Reuters) -The European Central Bank must be mindful of downside risks to inflation that stem from cheaper energy and a stronger euro, Finnish central bank chief Olli Rehn said on Friday.

Impact of Energy Prices

"We need to avoid a situation where we deviate too much below or too much above our target," Rehn said.

Interest Rate Decisions

The ECB left interest rates unchanged on Thursday and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.

(Reporting by Essi Lehto and Elviira Luoma, editing by Louise Rasmussen)

Key Takeaways

  • ECB is cautious about inflation risks due to energy prices.
  • A stronger euro could impact inflation negatively.
  • Interest rates remain unchanged by the ECB.
  • Olli Rehn emphasizes balanced monetary policy.
  • ECB maintains an optimistic view on growth.

Frequently Asked Questions

What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
What is monetary policy?
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve economic objectives.
What is the European Central Bank?
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone.

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