A top European Central Bank policymaker has pushed back against the view among some investors that another rate cut over the coming months is off the table, stressing that inflation risks are currently “tipped to the downside”.
In an interview with the Financial Times, Bank of Finland governor Olli Rehn warned against “complacency” about price stability, even though annual inflation has been in line with the ECB’s medium-term 2 per cent target in the past two months.
Over the summer, traders have dialled back expectations of another quarter-point cut in the ECB’s deposit facility rate this year.
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