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

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ECB stands ready to act but should study deeper challenges: Rehn
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The European Central Bank is ready to adjust all of its tools to lift inflation ...

FILE PHOTO: Governor of the Bank of Finland, Olli Rehn attends a Reuters Newsmaker event in London, Britain, May 29, 2019. REUTERS/Hannah McKay

With growth and inflation both slowing, the ECB has said that more stimulus may be needed and markets are already expecting a rate cut to new record lows. Some analysts even predict a restart of asset purchases, widely known as quantitative easing. He also said that inflation may fluctuate in the short term on either side of the ECB’s target, reinforcing recent comments from Draghi that the ECB could let inflation rise above target after a period of excessively low price growth.

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