(Bloomberg) -- Recent turbulence in global stock markets was an “overreaction,” according to European Central Bank Governing Council member Olli Rehn.
“My own understanding is that it was an overreaction of market forces in the conditions of uncertainty and thin market liquidity during the holiday season, not so much due to issues arising from the fundamentals of the economy,” Rehn said.
In a speech published Wednesday by the Bank of Finland, Rehn said the US economy remains “relatively strong” even though July’s employment figures — released Friday — fell short of market expectations.
Central banks don’t tend to react to individual market changes, Rehn said, adding that and the ECB continues to “vigilantly” monitor the development of the overall picture of the economy in terms of price and financial stability as well as growth and employment.
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