- Sticking to full optionality on rates, full freedom of action and moving forward meeting by meeting
- Downside inflation risks dominate slightly at the moment, but upside risks are also present
- Rejected pre-emptive easing on the base of insurance
- Inflation expectations are well anchored around 2% target
- Loss of Fed independence would have consequences for ECB policy too
- Full interview here
There’s nothing new here from Rehn as he sticks with his neutral stance
ECB’s Rehn: Sticking to full optionality on rates, full freedom of action