Markets seem to underestimate the ECB Brexit – Rehn threat

BERLIN (Reuters) – The risk of Britain leaving the European Union without an agreement is the main short-term risk for slowing growth in the eurozone, Finnish central bank chief Olli Rehn said in the German newspaper Die Welt.

"In the short term, Brexit is certainly the biggest threat," said Rehn, who serves on the board of governors responsible for setting interest rates at the European Central Bank. "Financial markets seem too relaxed and underestimate the risk."

He added that the ECB had made arrangements with the Bank of England to ease turbulence in the case of a messy Brexit.

Asked about the risk of recession in the eurozone, Rehn – often cited as a potential candidate for the succession of ECB President Mario Draghi – said: "Growth has actually slowed down a lot and we have to worry about it. economy".