ECB's Olli Rehn on Monetary Policy and Geopolitical Concerns

Olli Rehn, a member of the European Central Bank (ECB) Governing Council and Governor of the Bank of Finland, shared insights on the future of monetary policy and geopolitical risks at the Asian Financial Forum 2025 in Hong Kong. Rehn expressed optimism about the current direction of inflation, suggesting that the ECB's restrictive monetary policy could be phased out by midsummer. "Given that inflation is moving in the right direction, it makes sense to continue with rate cuts," Rehn stated, highlighting the clear trajectory of interest rates.

Geopolitical Risks and Trade War Preparedness

Rehn also addressed the potential for geopolitical developments to impact the global economy, particularly the European Union. He cautioned against complacency in the face of possible trade wars, especially with the United States under President-elect Donald Trump. "The European Union should not be unprepared for a trade war," Rehn emphasized, pointing to Trump's intentions to impose import tariffs as a significant concern.