Rehn says high yields limit energy price pass-through
ECB policymaker Olli Rehn said rapid energy inflation in the euro zone has not yet spread significantly to prices of other goods and services.
Rehn said rising long-term bond yields could limit the pass-through of energy costs to prices and wages by slowing economic growth.
Euro-zone inflation remains above the ECB’s 2% target, while markets are pricing two to three additional rate increases in the current cycle, including roughly an 80% chance of a move by December. Rehn did not directly signal the next policy decision.
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