ECB's Rehn: Upcoming stimulus will 'overshoot expectations'

Thursday, 15. August 2019 16:09

Olli Rehn, a member of the Governing Council of the European Central Bank (ECB), stated on Thursday that a stimulus package which will be announced during the bank's next policy meeting in September should "overshoot" investors' expectations. In an interview for the Wall Street Journal, the governor of Finland’s central bank said that it would be better to have a "very strong package of policy measures than to tinker," if the policymakers want the measures to impact the economy significantly.

Rehn is a strong proponent of stimulus in the face of the looming economic slowdown and is also a member of the ECB's rate-setting committee.

The euro slid against the dollar after Rehn's statement to 0.21% below the flatline at 16:06 pm CET, while it lost 0.74% compared to sterling concurrently.

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Breaking the News / MA