European Central Bank Governing Council member Olli Rehn stated that the bank needs to look beyond the current increase
In inflation while setting its monetary policy to avoid curbing economic growth, according to Bloomberg News.
“If we react strongly to inflation in the short term, we will probably cause growth to stop,” Rehn said in an interview with Finnish channel on Saturday.
economic”.
“It is better to look beyond inflation in the short term and to look at the inflation situation in 2023 and 2024,” he said, adding that price growth in the coming years might
To “close to the 2% target”.
Ren, who is also the governor of the Finnish central bank, said wage development in the eurozone was still weak, and inflation was unlikely to remain significantly high.
Permanent unless paid for by labor costs.
Rehn’s comments mirror those of European Central Bank President Christian Lagarde, who said last week that the urgency in tightening policy
The monetary policy would hurt the eurozone economy’s recovery from the pandemic.
