ECB policymakers expressed concerns over high inflation and agreed that a gradual normalisation of the monetary policy should continue, minutes from the last ECB meeting in April showed. The central bank also reinforced that net asset purchases under the APP should be concluded in the third quarter, sooner rather than later and that forward guidance conditions for a rise in key interest rates would become crucial for the policy discussion at the June meeting.
During the April 2022 meeting, the ECB left interest rates at record low levels and confirmed monthly net purchases under the APP will amount to €40 billion in April, €30 billion in May and €20 billion in June. With bond buys set to end in the third quarter and as interest rates will only rise thereafter, money markets are currently pointing to the first rise in interest rates in July 2022.
