Rehn Says Fast ECB Action Needed If Second-Round Inflation Seen

European Central Bank Governing Council Member Olli Rehn said it’s “clear” that monetary policy must react fast to any signs of inflation becoming entrenched in the economy through higher wages and prices.

While there are “no obvious signs” of such impacts yet and in the short term, the ECB is closely monitoring the possible emergence of the so-called second-round effects, Rehn said in an interview on Finland’s YLE TV1 on Saturday.