MADRID (Reuters) – European Central Bank Vice President Luis de Guindos said on Wednesday that the bank will first need to end asset purchases before interest rates can rise.
“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 may start raising interest rates before ending its bond-buying program, challenging the bank’s view on the sequel to 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.
(Reporting by Jesús Aguado and Emma Pinedo)
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