World News

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

HELSINKI (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.

(Reporting by Anne Kauranen; Writing Balazs Koranyi; Editing by Alison Williams)

tagreuters.com2020binary_LYNXMPEG0S0NK-BASEIMAGE