ECB's Rehn: High yields to dampen energy price pass-through
European Central Bank policymaker Olli Rehn stated that while energy inflation has not yet broadly spread to other goods and services in the euro zone, the recent rise in bond yields is expected to temper price pressures by weighing on economic growth.
Rapid energy-driven inflation across the euro area has not yet broadened into other goods and services, and Olli Rehn said Tuesday that the recent increase in bond yields is likely to ease price pressures by weighing on growth. Euro zone inflation is currently well above the European Central Bank's target.