Central Banks

ECB’s Rehn Urges ‘Steady Hand’ in Reacting to Iran Conflict

WATCH: “My advice in front of the mirror for the Governing Council meeting is to keep a cool head, maintain a steady hand and do not make hasty conclusions,” Rehn says.Source: Bloomberg

The European Central Bank should avoid knee-jerk reactions to the war in Iran and stick to its data-focused approach to setting interest rates, according to Governing Council member Olli Rehn.

History — including the 1970s, Russia’s invasion of Ukraine and the pandemic — offers lessons on such situations, the Finnish central-bank chief told Bloomberg Television. So far, the upswing in energy prices has been “less dramatic,” he said Thursday.