ECB Governing Council member Olli Rehn, a potential successor to chairman Mario Draghi, said the central bank stands ready to use all its tools to lift inflation. Rehn said in a conference in Helsinki, “the Governing Council stands ready to adjust all of its instruments, as appropriate, so that inflation continues to converge towards our inflation aim in a sustained manner.”
However, he also noted that “the ECB – much like other central banks – operates in a new environment where long-run trends, such as population aging, lower long-term interest rates and climate change have become key policy issues.” Those make case for a policy review that requires a deeper assessment.
