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In an interview with Reuters,  Finland’s new central bank governor Olli Rehn argued that the European Central Bank should not tie its hands too early when it comes to future monetary policy decisions and continue to monitor how the economy is doing.

Key quotes (via Reuters)

  • I think it’s indeed important to underline the data-dependent nature of decision-making.
  • I recognise the importance of forward guidance, but on the other hand, it is wise in monetary policy not to tie one’s hands too early if there’s no need.
  • The ECB has shown by its actions that its communication is correct and credible … The markets seem to be reading the forward guidance of the ECB correctly.