ECB Governing Council member Rehn said on Friday that energy prices are approaching the “unfavorable” scenario set by the ECB, but the sharp rise in long-term borrowing costs has limited the extent to which this round of inflation spreads to the wider economy. The Eurozone inflation rate has reached double the ECB's target level, and this situation has put further pressure on the ECB to raise interest rates. Although the ECB said that the inflation risk bias is higher than predicted, Rehn pointed out that the risk changes in both directions. “This highlights the fact that economic growth and inflation forecasts still face very high and widespread uncertainty,” he added. Rehn also warned that technology companies' loans may pose stability risks because the relevant valuations are too high and the market may adjust. He said, “Major revisions in valuations related to artificial intelligence may spread through the stock market and credit market. History tells us that technological revolutions can transform economies, but financial markets can also overestimate their short-term returns.”

ECB Governing Council member Rehn said on Friday that energy prices are approaching the “unfavorable” scenario set by the ECB, but the sharp rise in long-term borrowing costs has limited the extent to which this round of inflation spreads to the wider economy. The Eurozone inflation rate has reached double the ECB's target level, and this situation has put further pressure on the ECB to raise interest rates. Although the ECB said that the inflation risk bias is higher than predicted, Rehn pointed out that the risk changes in both directions. “This highlights the fact that economic growth and inflation forecasts still face very high and widespread uncertainty,” he added. Rehn also warned that technology companies' loans may pose stability risks because the relevant valuations are too high and the market may adjust. He said, “Major revisions in valuations related to artificial intelligence may spread through the stock market and credit market. History tells us that technological revolutions can transform economies, but financial markets can also overestimate their short-term returns.”