European Central Bank policymakers were split last month over how to tackle soaring inflation with some wanting interest rates to rise this summer, setting up a more heated debate when they meet again next week.
A number of ECB rate-setters pushed for “a firm end date” on its net bond purchases to prepare the ground for raising interest rates in the third quarter, warning that otherwise the bank risked “falling behind the curve” on inflation, according to the minutes of the governing council’s March meeting.
But others argued for a “wait-and-see” stance because of uncertainty over the economic impact on the eurozone of Russia’s invasion of Ukraine. They feared the war could “result in a technical recession”, which is defined as two consecutive quarters of negative growth rates.