ECB Vice President Luis de Guindos said in an interview, the consequences of invasion of Ukraine are “quite clear”, as higher inflation and lower growth. That should be reflected in in June outlook.
He sees “no reason why we should not discontinue our APP programme in July”. But the timing for the first rate hike will depend on the economic projections. “Nothing has been decided so far,” he said.
“From today’s perspective, July is possible and September, or later, is also possible. We will look at the data and only then decide,” he added. Then, the rate hike cycle will “depend on the data” and the “evolution of inflation.
