Rehn’s comments echo those of European Central Bank President Christine Lagarde, who this week warned that an accelerated tightening of monetary policy would damage the eurozone’s economic recovery from the pandemic.
Read also: Lagarde pledges ‘gradual’ adjustment in ECB policy
Policymakers in particular see a change in official sentiment soon over the next month, when they get new economic forecasts and reassess their bond purchases.
“We will have time to act at the March meeting and in subsequent meetings if the situation appears to be markedly different from what it appears now,” Ren said.
Rehn, 59, said earlier this week that he had prompted the ECB’s Governing Council to seek faster access to eurozone wage data to facilitate policy setting, at a time when inflation is mainly supported by supply factors, such as Rising energy prices, supply chain disruptions, and the collapse of pent-up demand for services following the Covid-19 shutdowns.
