The vice president of the European Central Bank, Luis de Guindos, said this Wednesday (23) that the institution will first need to end asset purchases so that interest rates can rise later.
“We will evaluate the (macroeconomic) data, the projections and then we will readjust asset purchases if necessary and see when an interest rate hike can happen,” De Guindos said at a financial event in Madrid.
Earlier on Wednesday, ECB member Robert Holzmann said the bank could start raising interest rates before ending its bond-buying program, challenging the bank’s view on the sequence of its monetary policy moves. .
With inflation hitting new record highs in recent months, the ECB has recently backed away from its pledge not to raise borrowing costs this year, but has long maintained that an end to bond purchases will come before any rate hikes.
Source: CNN Brasil
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