ECB Poised for Rate Cuts Amid Rising Economic Risks

European Central Bank policymaker Olli Rehn advocates for cutting interest rates, citing materialized economic risks since March. With inflation stabilizing and growth weakening due to trade tensions, Rehn emphasizes a strengthened case for rate reductions at the ECB's upcoming April meeting.

Olli Rehn, a prominent figure at the European Central Bank, has indicated that downside risks emerging since March bolster arguments for interest rate cuts at the ECB's April meeting.

In a statement released by the Bank of Finland, where he serves as governor, Rehn noted that several previously identified risks have either already emerged or are in the process of doing so. This development, according to him, amplifies the need for rate reductions based on assessments of inflation and economic growth.

Rehn had already favored such a move, conditioned on inflation aligning with projections. Last week's developments, showcasing stabilized inflation and deteriorating growth due to trade wars, have only reinforced his stance.

(With inputs from agencies.)