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- ECB's Rehn: Some governing council members see rates low for longer period
ECB's Rehn: Some governing council members see rates low for longer period
Some ECB governing council members think that keeping rates at current low levels into next year could be warranted
In this environment of economic uncertainty and weaker growth, there are grounds for continuing with very stimulating monetary policy.
The big question now is 'whether the European economy is experiencing a short and temporary phase of slower growth or a longer phase'.
ECB will know more about whether said uncertainties have started to intensify or ease before the 5 June meeting and that the Central bank is prepared to take any decisions that are necessary in accordance to the situation
If it is indeed a period of longer economic slowdown, then clearly a more accommodative monetary policy stance will be required
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