Consequently, the ECB and the Swiss National Bank each entered into swap arrangements with the Federal Reserve to obtain dollars and provided dollars to financial institutions operating in the respective markets (Chart 2).
A first interest rate hike could take place some time after that, depending on our evolving assessment of the outlook. Our June staff projections will put us in a better position to appraise where the euro area economy is heading. We need to observe the impact that shifts in financing conditions and the erosion of purchasing power are having on activity and inflation dynamics.