Eurozone Showing no Second-Round Inflationary Effects, ECB's Rehn Says

Dow Jones
08/19

0936 GMT - Pay growth and the wage outlook in the eurozone have so far remained moderate after the outbreak of this year's energy shock, with no clear signs of second-round effects, Bank of Finland Gov. Olli Rehn says. "Keeping inflation expectations anchored will be essential to ensure this remains the case," he said in a speech in Helsinki. The European Central Bank, of which Rehn is member of its governing council, last month kept its key interest rates on hold after raising it in June. "Designing the appropriate policy response to this supply shock is at the core of our work on the ECB Governing Council. We next meet in September to reassess the situation and outlook," Rehn said.

 

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