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Report: Finnish central bank chief warns against imminent rate hikes in new book

The European Central Bank should assess the impact of its prior monetary policy tightening measures and those taken by the U.S. Federal Reserve before considering an increase in interest rates, Suomen Pankki Governor Olli Rehn wrote in his new book, as he warned against an imminent hike, according to Bloomberg News.

Rehn was referring to two interest rate hikes delivered by the ECB in 2011 preceding the eurozone debt crisis and the termination of bond purchases by the Fed in 2013.

"Normalizing monetary policy awaits its turn, even though it would be important to increase the room for maneuver in monetary policy before the next recession," Rehn said, as he also pointed out that core inflation in the eurozone remains well below the ECB's target.

In his latest book, the Finnish central bank governor also suggested the future steps that the EU should take such as the completion of a banking union.

Rehn was among the members of the ECB Governing Council who supported monetary policy easing in the region. The ECB's next policy announcement is due Oct. 24.