Finland Bank Governor Rehn Evaluates Inflation and Interest Rates
Bank of Finland Governor Rehn stated that no second-round inflation effects linked to the war shock have been observed in the eurozone.
Speaking at an OMFIF event, the Governor of the Bank of Finland stated that the primary driver of inflation in the eurozone is energy prices and that no wage-price spiral has been seen so far.
Inflation and Wage Dynamics
Speaking at an OMFIF event held in London, the Bank of Finland Governor stated that the main driver of inflation in the eurozone is clearly energy prices.
No Second-Round Effects Observed
Stating that wage increases are following a moderate path, the official emphasized that no second-round effects of a wage-price spiral have been observed so far.
European Central Bank's Steps
Borrowing costs were increased because inflation remains well above the target rate and the economy is resilient to conflicts in the Middle East.
Future Interest Rate Expectations
Officials stated that they expect borrowing costs to increase further in the upcoming period and that new steps could be taken if conditions require.