ECB will take action to bring inflation to 2% in the medium-term
The ECB is prepared to take monetary policy action at any time if needed to bring inflation to 2% in the medium-term.
The central bank has made it clear that there is no pressure from second round effects to force their hand before the summer break.
Traders are currently pricing in a full 25 bps rate hike by September and ~42 bps of rate hikes by year-end, amid rising oil prices and bond yields.