HELSINKI (Reuters) – The European Central Bank’s decision to accelerate its exit from extraordinary stimulus was a compromise decision and leaves the bank with plenty of room to manoeuvre in case the outlook changes, Finnish central bank chief Olli Rehn said on Friday.
“It was a compromise and we all supported the decision unanimously, and I defend the decision,” said Rehn, who argued for caution in the weeks leading up to the meeting. “We maintain and in fact increase the freedom of manoeuvre.”
“In this kind of pervasive uncertainty… it’s always worthwhile to move in small, prudent steps and wait until the fog clears,” he said.
The ECB now guides markets for an interest rate increase “some time” after bond purchases end and Rehn said this could mean weeks or months.
(Reporting by Anne Kauranen; Writing by Balazs Koranyi; Editing by Alex Richardson)
