The European Central Bank (ECB) should be able to phase out asset purchases in July to pave the way for an interest-rate increase early in the month, ECB Vice President Luis de Guindos said.
A decision hinges on the ECB’s economic forecasts at its June policy meeting, although it is “crystal clear” that higher inflation and lower growth are to be part of the mix, De Guindos said.
He discounted the chance of a recession and stagflation in the eurozone.
“I see no reason why we should not discontinue our asset purchase program in July,” De Guindos said.
“For the first rate hike, we
The European Central Bank (ECB) should wind down net bond buying in the summer, while giving itself more flexibility on the timetable for any subsequent interest rate increase, Governing Council member Peter Kazimir said in an interview on Thursday.
The Slovak central bank chief said the tool which was created to stave off deflation after Europe’s debt crisis and was expanded during the COVID-19 pandemic has outlived its usefulness.
The ECB does not have a firm end date for its asset purchase program.
“The risks this instrument was designed to address have subsided, while on the other hand the negative