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

Business Recorder reported from Stockholm that Olli Rehn, a policymaker at the European Central Bank, said on Wednesday that current pay growth and the expected wage trend are still moderate. In his view there is no obvious sign of second-round effects, meaning price rises feeding into higher wage demands.

Rehn, who also governs Finland's central bank, stressed in the written text of a speech that keeping inflation expectations anchored is essential to maintain this outcome. Anchored expectations refer to households and firms continuing to expect inflation to stay near the central bank's target over time.

The ECB's next policy update falls on September 10. The remarks focus on ECB wage and inflation views, and the report names no PSX-listed company or sector, so the link to Pakistani stocks is indirect.