European Central Bank Governing Council member Olli Rehn stated on Wednesday that the ECB remains confident that inflation in the euro area will stabilise at the target as predicted.
The official noted that monetary policy will stop being restrictive in the near future but emphasised the importance of maintaining flexibility in monetary policy decision-making.
Rehn pointed out that the threat of a trade war and the resulting disruption of international trade pose a risk of rising prices. At the same time, inflation could surprise to the downside if economic growth in the euro area does not pick up as expected.
He highlighted that while the direction of monetary policy is clear, the pace and scale of interest rate cuts are decided at each meeting based on the latest data and a comprehensive overall assessment.