European Central Bank Governing Council member Olli Rehn emphasized on [date of speech] that keeping inflation expectations anchored is essential to the ECB’s credibility and the effectiveness of its monetary policy. Rehn, who also serves as Governor of the Bank of Finland, reinforced the ECB’s commitment to its 2% inflation target during a recent speech. Anchored inflation expectations—public confidence that inflation will return to the central bank’s target—help households and businesses make wage, pricing and spending decisions that improve policy transmission. If expectations become unanchored, inflation can become entrenched, forcing the ECB into a more difficult trade-off between controlling prices and supporting economic activity. Rehn’s remarks come as the ECB manages a delicate phase of policy normalization after elevated inflation tested its resolve. They suggest that the Governing Council remains vigilant and that future interest-rate decisions will depend on incoming data and the evolution of inflation expectations, with rates potentially remaining restrictive until inflation is convincingly on track toward 2%.