(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.
The European Central Bank should come up with “impactful and significant” stimulus package at its next meeting in September, policy maker Olli Rehn was reported as saying on Thursday.
In comments that weakened the euro and sent bond yields lower, Rehn told the Wall Street Journal in an interview that it was better for the ECB to overshoot than undershoot market expectations when it comes to new support measures.
The comments from the Finnish central banker come amid growing concern about a deepening global downturn. The German economy shrank in the second quarter and yields on U.S. and U.K. long-term bonds fell below their shorter equivalents in what is typically seen as a harbinger of a recession.
The euro fell to its low of the day, down 0.3% at $1.1108.
The ECB is already expected to announce fresh measures to jump-start the euro-zone economy when policy makers meet on Sept. 12, with most economists predicting at least a cut in its deposit rate from the current minus 0.4%. President Mario Draghi signaled last month that all options are on the table, including a potential restart of its quantitative-easing program.
To contact the reporter on this story: Piotr Skolimowski in Frankfurt at email@example.com
To contact the editor responsible for this story: Paul Gordon at firstname.lastname@example.org
©2019 Bloomberg L.P.