Central Banks Reluctant to Respond to Market Fluctuations, Says Economist
The recent turbulence in global stock markets at the start of the week has been characterized as an “overreaction.” This perspective comes from Olli Rehn, the Governor of the Bank of Finland and a member of the European Central Bank’s (ECB) Governing Council, as reported by Bloomberg.
“My understanding is that this was an overreaction to market forces amid uncertainty and low market liquidity during the summer season, rather than a reflection of underlying economic issues,” Rehn stated.
U.S. Economy Remains Resilient
In a speech released on Wednesday by the Bank of Finland, Olli Rehn pointed out that the U.S. economy continues to show “relative strength,” despite employment data from July, published last Friday, falling short of market expectations.
Central Banks Focus on Broader Economic Trends
Rehn emphasized that central banks are generally not inclined to react to isolated market fluctuations. He added that the ECB is also maintaining a vigilant watch on the overall economic landscape concerning price and financial stability, as well as growth and employment.
Stay informed on financial news and trends by following relevant updates across various platforms.
