ECB stands ready to act but should study deeper challenges: Rehn By Reuters

HELSINKI (Reuters) – The European Central Bank stands ready to adjust all of its instruments to lift inflation but should also study a range of deeper challenges that may alter the course of its policy, Finnish central bank chief Olli Rehn said on Monday.

“The ECB – much like other central banks – operates in a new environment where long-run trends, such as population aging, lower long-term interest rates and climate change have become key policy issues,” Rehn, who sits on the ECB’s Governing Council, told a conference.

“The central banking community needs to better understand their implications for growth, employment and inflation dynamics, so that we can deliver more effectively within our mandates,” Rehn, a candidate to replace ECB President Mario Draghi, said.