ECB's Rehn says wage growth remains moderate, no second-round effects

European Central Bank policymaker Olli Rehn said wage growth and the wage outlook remain moderate and there are no clear signs of “second-round effects” pushing inflation higher indirectly. Rehn, also governor of Finland’s central bank, argued that keeping inflation expectations anchored is “essential” to sustain that situation. He delivered the remarks in the written text of a speech issued on Wednesday in Stockholm. The statement comes ahead of the ECB’s next monetary policy meeting, scheduled for September 10. The comment frames the debate around whether wage dynamics could add upward pressure to prices as the ECB sets interest rates.