08/23/2024 – 13:55
European Central Bank (ECB) chief Olli Rehn said Friday that signs of a weaker economy in the euro zone support a September interest rate cut, but he avoided committing to a specific size for the base rate reduction. In an interview with Bloomberg TV, in the middle of the Jackson Hole Symposium, Rehn said he intends to analyze the series of economic indicators to be released before next month’s meeting.
The director, who heads the Bank of Finland, said he was open to the possibility of a 50 basis point cut in interest rates, although he stressed that a decision was not guaranteed.
Asked about the strengthening of the euro, which reached its highest level in over a year against the dollar on Friday, Rehn acknowledged that the movement could have an indirect effect on inflation, but stressed that the ECB does not set a target for the exchange rate.
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