TREE NEWS reports: European Central Bank Governing Council member Rehn said the ECB must remain vigilant on the inflation outlook, adding that no second-round inflation effects have been seen. Growth prospects are now better than at the start of the year, while the labor market is less tight and wage growth continues to slow.
ECB’s Rehn: Must Stay Vigilant on Inflation Outlook
Rehn's emphasis on vigilance sits alongside an acknowledgement that second-round effects have not materialised, which is the more consequential signal: it suggests the ECB's concern is about persistence risk rather than an active wage-price spiral. The softer labour market and slowing wage growth reinforce that reading. For crypto and RWA markets, the transmission runs through rate expectations rather than anything crypto-specific, so the open question is whether other Governing Council members echo this framing or push back against it.
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