Soon, preferably by July, net asset purchases should be fully completed. This would allow for the first ECB rate hike since 2011. The next policy steps will depend on incoming data and prospects for approaching our 2% inflation target in the medium term. Given the uncertain economic outlook, it is important to move on gradually.
By being able to flexibly reinvest maturing bonds from the pandemic portfolio, we will continue to work against increased fragmentation in the bond markets. While is a priority for the Eurosystem to navigate the challenges of elevated inflation, monetary policy interacts with fiscal and other policies. Fiscal and monetary policy consider each other's actions when designing policy measures.