(Reuters) – Finnish central bank governor Olli Rehn said on Monday that the European Central Bank’s Governing Council was determined to act if the medium-term inflation outlook continues to fall short of its target of below but close to 2%.
“Despite the stronger labor market and accelerating wages, inflationary pressures remain muted, and indicators of inflation expectations have declined with the weakening economic outlook,” Rehn, a Governing Council member, said in a speech published by the central bank.
“A significant degree of monetary stimulus continues to be necessary to ensure that financial conditions remain very favorable and to support euro area growth and domestic price pressures,” he said.
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