Olli Rehn from ECB: increased defense spending in Europe will support economic growth

Olli Rehn, a member of the Governing Council of the European Central Bank (ECB), stated in an interview with Reuters that the European economy has already been negatively impacted by US President Donald Trump's import tariffs. However, increased defense spending by Germany could support the region's GDP growth in the medium term.

According to Olli Rehn, the sixth consecutive interest rate cut by the ECB has created favorable lending conditions for EU citizens and businesses. As the official noted, further prospects for reducing borrowing costs have not yet been determined. Rehn also highlighted the stabilization of inflation in the EU at the ECB's target level of 2%.

As the official suggested, the European Central Bank may implement several more interest rate cuts this year, provided that the region's economic dynamics and Consumer Price Index (CPI) align with the financial regulator's baseline forecasts.