Economics

Rehn Warns Against Currency War as ECB Plans Attacked by Trump

  • Finnish central banker says U.S. is ‘not completely innocent’
  • ECB could add extra stimulus in forthcoming policy meetings
Bank of Finland Governor Olli Rehn says the U.S. has played a role in escalating the trade war.Source: Bloomberg
Lock
This article is for subscribers only.

European Central Bank policy maker Olli Rehn warned of a risk that persistent trade tensions will morph into a global currency war, a day after U.S. President Donald Trump attacked ECB President Mario Draghi for weakening the euro.

Rehn said the exchange rate isn’t a policy target and officials are taking decisions based on economic developments in the euro zone. Draghi said on Tuesday that additional monetary stimulus will be required if the outlook doesn’t improve.