Abating risk could push euro zone growth higher: ECB’s Rehn

FILE PHOTO: Governor of the Bank of Finland Olli Rehn attends the informal meeting of ministers for economic and financial affairs (ECOFIN) and Eurogroup in Helsinki, Finland, 13 September 2019. Lehtikuva/Emmi Korhonen via REUTERS

Euro zone growth could exceed projections if global risks abate, European Central Bank policymaker Olli Rehn said on Wednesday, noting that the ECB still has tools to stimulate the economy, if needed.

Rehn, Finland’s central bank chief, said that 2021 growth could be closer to 1.5% if negative risks do not materialize and pointed to a global trade war, Brexit and the coronavirus outbreak as the main sources of uncertainty.

He said the latest data pointed to a rise in core inflation but the ECB would still like to see faster wage growth.

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