ECB Governing Council member Olli Rehn said interest‑rate decisions are not predetermined and will depend on medium‑term inflation outlook.
He warned that a prolonged Middle East war could cause second‑round price and wage effects, unanchoring inflation expectations and prompting tighter policy.
Rehn emphasized that a rate hike is not guaranteed, but any sustained inflation pressure would lead to monetary tightening per ECB strategy.
He also warned against slowing the green transition, noting war‑related energy infrastructure damage underscores its importance for Europe’s resilience.