ECB policymakers see July hike as still possible – sources

div classBodysc17zpet90 cdBBJodivpFRANKFURT Reuters – The European Central Bank could still raise its interest rates in July but policymakers agreed at a meeting on Thursday to keep their options open for now as the economic outlook is clouded by the Ukraine war, two sources told Reuters.p

pThe sources close to the matter said policymakers were unanimous in backing Thursdays policy message, which says the ECB would end its bondbuying programme in the third quarter of the year and raise rates “some time” after that.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe euro zone‘s ratesetters differed, however, on some of the risks, such as that longterm inflation expectations veer off the ECB’s 2 target. p

pAn ECB spokesman declined to comment. p

pECB President Christine Lagarde said at a news conference that a deanchoring of inflation expectations was the last thing the central bank wanted.p

pShe added a rate hike, which was not discussed at Thursdays meeting, could come “a week” or several months after the Asset Purchase Programme ends.p

pA closely watched market gauge of longterm euro zone inflation expectations was close to 2.4 on Thursday.p