ECB's Rehn: Eurozone Inflation Contained Outside Energy, Wages

ECB's Rehn: High Long-Term Rates Slow Eurozone Growth, Ease Wage Pressure

ECB Governing Council member Rehn stated elevated long-term rates are restraining growth and reducing pass-through from energy costs to broader prices and wages. This addresses the wages stage of the macro chain: sticky wage growth would keep services inflation elevated and force the ECB into a tighter stance. Markets watch next whether pay pressure persists despite rate headwinds, which feeds demand outlook for EUR.

https://x.com/FirstSquawk/status/2107380759980056646

ECB's Rehn: No Signs of Second-Round Wage Inflation Effects

ECB Governing Council member Olli Rehn stated he sees no evidence of second-round effects in wage inflation, suggesting price pressures are not feeding into sustained wage-price spirals. The comment supports a dovish ECB tilt amid Eurozone sovereign-debt stress, particularly the French-German 10-year spread at its widest since 2011, keeping EUR under pressure.

https://x.com/financialjuice/status/2107392104058048810

ECB's Rehn: No Signs of Second-Round Wage Pressures

ECB Governing Council member Olli Rehn stated there are no indications of second-round inflation impacts, signalling the central bank sees wage-price spiral risks as contained. EUR traders watch this as dovish-leaning commentary amid Eurozone sovereign-debt stress; French-German spreads at 2011 wides dominate sentiment, making any ECB reassurance on inflation control relevant to near-term rate-cut expectations.

https://x.com/FirstSquawk/status/2107392206063784185