4 Monetary policy – preparing fo rising interest rates Since December, the ECB Governing Council has started to normalise monetary policy. Against the background of the current inflation dynamics, increasing calls for a quick end to the highly accommodative stance are understandable. However, it is important to proceed in a reliable, systematic manner especially in times of extraordinary uncertainty.
Our actions will be datadriven and step-by-step, as I have already emphasised at other occasions. The Governing Council expects APP net purchases to be concluded in the summer. From today’s vantage point, they could be wrapped up at the end of June. In my view, that should be followed by a timely initial rate hike, which could be in July.