ECB’s Rehn: Outlook clouded by bottlenecks, virus variants

The European Central Bank Governing Council member and the Bank of Finland Governor Olli Rehn cross the wires in the last hour, saying that inflation above the target is temporary. Medium-term outlook dampened by slack, muted wage pressures.

Additional quotes:

• Growth is robust but still needs support as the outlook is clouded by bottlenecks, virus variants.
• Rate hike not yet in sight but will one day happen, governments should prepare.

Market reaction

Rehn’s dovish sounding remarks aggravated the intraday bearish pressure around the shared currency and dragged the EUR/USD pair to fresh session lows, around the 1.1780-75 region.