ECB's Rehn says it is likely to raise inflation in the short-term; this kind of conflict tends to dampen demand and leads to more subdued growth

ECB's Rehn says it is likely to raise inflation in the short-term; this kind of conflict tends to dampen demand and leads to more subdued growth.

The comments from ECB's Rehn suggest a hawkish tone regarding inflation in the short-term, likely indicating a potential shift in the monetary policy landscape as the ECB may respond to heightened inflation pressures. However, the acknowledgment that conflict dampens demand implies a complicated growth outlook, which could influence future rate decisions and market sentiment towards the Euro and fixed income assets.