External Risks to Continue Impacting Eurozone Economy for Some Time: ECB Policymaker - Forex News by FX Leaders

External Risks to Continue Impacting Eurozone Economy for Some Time: ECB Policymaker

Posted Tuesday, June 11, 2019 by
Arslan Butt • 1 min read

According to ECB policymaker Olli Rehn, the central bank is open to cutting interest rates further, resuming its bond purchase program and can even continue to keep borrowing costs low to combat any potential weakness in the economy.

At the most recent policy meeting held last week, the ECB had revealed that external risks to Euro area are not expected to fade anytime soon. Geopolitical and trade tensions remain high around the world, and they seem unlikely to subside soon as the US and China continue their trade war.

Rehn says the ECB needs to review its strategy in order to achieve price stability. The current slowdown in Eurozone’s economy is making it challenging for the central bank to keep inflation under 2% – its goal.

Rehn is currently the head of Finland’s central bank and is widely expected to succeed ECB’s President Mario Draghi later this year.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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