9/17, 10:35 AM (Source: TeleTrader)
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ECB's Rehn warns on low inflation and slow growth

Governor of the Bank of Finland Olli Rehn (pictured) commented on Thursday Fed’s new strategy saying it will surely have an impact on the ECB. "We are not operating in a vacuum" currency wars, he asserted.

Rehn added that a reassessment of the ECB's monetary policy strategy is necessary due to "both long-term low inflation and the economic damage caused by the interest rate pandemic." He added that the central bank's role is to work more effectively to support the Union's other economic policy objectives "without jeopardizing price stability, in order to bring about economic recovery and improve long-term growth prospects."

"A strong stimulative monetary policy is still needed to support the economy and employment and achieve the goal of price stability," said Rehn, adding that there is a risk that inflation will continue to be too low and drag the Euro Zone in a trap of slow growth and low inflation for a "long time."

Breaking the News / TF