MNI BRIEF: Could Be Time To Revisit ECB Language - Rehn
MNI (LONDON) - With disinflation on track and headline inflation stabilising at the 2% target, it could be time for the ECB to discuss its statement language of returning inflation to target in a timely fashion and policy remaining restrictive, Governing Council member lOlli Rehn said Tuesday.
Rehn said communications for a central bank needed to remain consistent, at least until the circunstances changed.
"For me, that is an empirical question and I await the December forecasts to look at it," he told a UBS conference in London.
Quizzed on the neutral rate, Rehn said "we think at the Bank of Finland think the neutral rate is between 0.2% and 0.8%. ECB policy is likley to reach neutral territory in spring-winter 2025," which he said in Finland could mean anything between February and June. (See MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany)