European Central Bank Governing Council member Rehn believes that the March inflation forecast faces downside risks.

European Central Bank Governing Council member Olli Rehn said that due to the impact of US trade tariffs, the inflation rate may be below the target of 2%, reaffirming that this will be a reason to further lower interest rates. "Financial markets seem to believe that tariffs and related uncertainties will slow down inflation in the euro area, at least in the short term," Rehn said in an online event on Monday. "I find it reasonable to assume that the inflation outlook in the ECB's March forecast is facing downward risks."