ECB's Olli Rehn Supports June Rate Cut

European Central Bank (ECB) Governing Council member Olli Rehn has indicated that a rate cut in June would be the "right move" if the current economic forecasts hold true. Speaking in Helsinki, Rehn highlighted that many of the risks previously identified by the ECB in March have now "largely materialized."

Strengthening Europe's Economic Foundation

Rehn emphasized the necessity for Europe to bolster its economic foundation by enhancing productivity to realize its full potential. He critically assessed whether the slogan 'This is Europe's moment' signifies genuine progress and called on policymakers to explore the proposals set forth by former ECB President Mario Draghi, aimed at fostering innovation and industrial growth.

Current Economic Climate

Despite noting that disinflation is proceeding as expected and employment rates remain robust, Rehn cautioned that the growth outlook for the euro area is still fraught with uncertainty. This uncertainty is partly attributed to the ongoing trade tensions under the administration of US President Donald Trump.