ECB: Rehn, market expectations of a rate increase are understandable

Market expectations for a new ECB rate hike at its meeting on 10 September are "understandable". This was stated by the Finnish governor and member of the ECB board, Olli Rehn, in an interview with the Financial Times, without however expressing himself in favor of an increase.

According to Rehn, the ECB must prepare for a prolonged conflict: "We could see a war of attrition in the Middle East." The risk is that the tensions and the almost total closure of Hormuz will keep energy prices and inflation high.

“We must show no complacency in the face of these inflationary pressures,” he said.