ECB's Olli Rehn Warns Inflation Pressures Cannot Be Taken Lightly

European Central Bank Governing Council member Olli Rehn warned in a media interview that a prolonged Middle East conflict could keep eurozone inflation pressures elevated. According to Sina Finance, Rehn said rising energy prices and the near closure of the Strait of Hormuz mean that "we must not take inflation pressures lightly." Rehn also said market bets on a September 10 rate hike by the European Central Bank were "understandable," but he did not clearly say whether he would support a hike then. He added that, given uncertainty over the geopolitical situation, monetary policy decisions should be made meeting by meeting.