The ECB will stop buying debt in the third quarter but moves away from rate hikes until inflation is at 2%

The

moves away the possibility of

this year as a measure to combat

, contrary to what the market consensus expected, but it

to try contain prices.

"

and will remain high in the coming months, mainly due to the notable increase in energy costs. Inflationary pressures have intensified in many sectors. At its meeting today, the Governing Council considered that the new data available since its last meeting reinforces its expectation that

", it has indicated in its monetary policy decision document published after the meeting of this Thursday in Frankfurt.

However, they have specified that "the Governing Council expects the ECB's official interest rates to

well before the end of its projection horizon and in a lasting way. in the rest of said horizon, and consider that the progress made in core inflation is sufficiently advanced to be compatible with a stabilization of inflation at 2% in the medium term".

Specifically, they point out that any adjustment in rates will take place

from the end of the net purchases of the Governing Council and "will be

", in line with what had already been advanced in March.

The market hoped that the ECB could make a

, so that they could take place already this year.

Some analysts pointed to

, others to start in

.

But it seems that

, which it has kept at

for the time being .

Given that the inflation that the economy suffers is caused by the supply side and not the demand side, many argue that an increase in rates would not serve to alleviate it.

In addition, by not accelerating rate hikes, the bank chaired by

avoids putting spokes in the wheel of the

, especially now that its growth is threatened by the war in Ukraine.

What the entity will do to contain the escalation in prices will be to end the

In March the ECB announced that it would buy €40bn under the purchase program in April, €30bn in May and €20bn in June, before cutting net purchases to zero in the third quarter.

This Thursday, the highest monetary policy agency has reconfirmed that

With this measure, he hopes that inflation will decrease so that, when it reaches the level of 2%, they can proceed to touch the rates.

Although the bond purchases end in the summer,

of the securities purchased, so that they mature for a prolonged period after the date on which the official ECB interest rates begin to rise and, in any case, , "

and a broad degree of monetary accommodation", they assured.

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