European Central Bank (ECB) policymaker Robert Holzmann gave a hawkish mixed statement on Wednesday that the central bank could start raising interest rates even if its bond -buying program has not ended.
This statement is indirectly seen as challenging the central bank's stance on the order of its next policy measures.
With inflation hitting new record highs in recent months, the ECB has not ruled out the possibility of an interest rate hike in 2022.
However, they also stressed that the termination of bond purchases would take precedence, before any interest rate hikes were implemented.
This is also acknowledged by several other central bank policymakers who have focused their discussions on when the bond -buying program will end.
However, it is not for the ECB Holzmann who saw two interest rate hikes by the ECB this year, namely in the summer and the end of the year even though the quantitative easing has not ended.
The ECB is set to hold its next policy meeting on March 10 and economists expect a similar arrangement to be stressed.
Policymakers are also expected to signal the termination of bond buying in the third quarter and open the door to rate hikes before the end of the year.
The euro traded positive at the beginning of the European session following the hawkish statement, as well as supported by the weakening US dollar.
