ECB’s Rehn: Medium-term inflation expectations increased to around 1.9%

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The medium-term inflation expectations in the eurozone have increased to around 1.9%, which is in line with the European Central Bank’s strategy, ECB Governing Council Member Olli Rehn said on Thursday, per Reuters.

“Due to persistent production bottlenecks, it is possible that an increase in energy prices has a longer-lasting impact on consumer prices,” Rehn added. “We analyse this development carefully at the Governing Council and at the Bank of Finland.”

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen posting modest daily gains at 1.1612.