ECB's Rehn sees few signs yet of high inflation taking root

ECB policymaker Olli Rehn said the central bank may raise rates to preserve credibility amid a war-driven surge in fuel costs, but emphasized there is still little evidence that high inflation is taking root in the euro area. The message is cautious and mildly hawkish, underscoring upside inflation risks while not signaling an immediate shift to aggressive tightening.

Analysis

ECB policymaker Olli Rehn said the central bank may raise rates to preserve credibility amid a war-driven surge in fuel costs, but emphasized there is still little evidence that high inflation is taking root in the euro area. The message is cautious and mildly hawkish, underscoring upside inflation risks while not signaling an immediate shift to aggressive tightening.