Rate cuts will support recovery, ECB’s Rehn says

COPENHAGEN, June 7 (Reuters) – Inflation will continue to decline and interest rate cuts will support economic recovery, Finnish ECB policymaker Olli Rehn said in a blog post on Friday.

The possible scale of interest rate cuts in the next few years could be in the range of 1 to 2 percentage points, given there won’t be any new shocks to the economy, Rehn said, while adding that this was not a policy prediction.

“Yesterday, we were able to send positive news about the economy from Frankfurt for a change: the severe inflationary pressure has subsided and the interest rate cut also supports the recovery of growth,” Rehn wrote.

Source: REUTER