ECB's Rehn says inflation picture has shifted since the bank's comfort zone
Rehn says conditions have changed since the ECB last felt at ease on inflation, a sign the debate over October is not settled
Published
European Central Bank official Olli Rehn said the central bank had been in a good place on inflation, but signalled that the situation has since moved amid recent shocks.
Other ECB officials have described those shocks in sharper terms. Gabriel Makhlouf said every meeting is now live, that inflation risks skew higher, and that nothing is off the table for the months ahead. Mario Centeno's colleague Pereira said risks have risen considerably over the past few months and have worsened since the ECB's last rate move in September.
Rehn's shift from past confidence to present caution tightens the case for another rate increase. Markets are pricing better than even odds of an October move, and his language suggests the shocks since September have eroded the comfort the bank once had on inflation, even as policymakers remain divided on how soon to act.