In an interview with the Finnish newspaper Helsingin Sanomat, Rehn – who is also a member of the ECB Council – points out that “low energy prices, a stronger euro and reduced wage and services inflation pose a risk of overall inflation slowing down too much”.
This risk should not be underestimated, says Rehn when asked whether the ECB should lower the key interest rate further at the December meeting.
At the same time, he also warns of risks that could lead to rising inflation.
Rehn thus reinforces expectations that there will be no changes in December to the interest rate level, which has already been lowered to 2 percent this year.
The ECB's interest rate policy is also important for Sweden, as the Riksbank very closely monitors and evaluates monetary policy in the area that includes several of Sweden's largest trading partners.
