ECB's Rehn sees no second-round inflation, backs joint debt for defence

LONDON, Sept 17 (Reuters) - European Central Bank policymaker Olli Rehn said on Thursday there were no clear signs of second-round inflation effects in the euro zone and backed the use of jointly-issued debt for strengthening the region's defence capabilities.

Speaking at an event in London, Rehn said the same tightness was not evident in the euro zone's labour market as that witnessed in 2022 after the invasion of Ukraine and the post-COVID crisis, although the central bank was watching that, and other data, closely.

He also said it was closely monitoring the "political scenery" in Europe ahead of elections in the likes of France next year, stressing the bank had a toolbox of "viable instruments" to ensure smooth transmission of monetary policy.

(Reporting by Marc Jones; editing by Amanda Cooper)