ECB pushes on with stimulus exit, hikes inflation forecasts for 2022-24

February's record 5.8 per cent inflation rate and the prospect of an even higher reading in March intensified pressure on the bank to act in line with its inflation-busting mandate

The European Central Bank will end asset purchases in the third quarter, it said on Thursday, moving ahead with its exit from stimulus as soaring inflation outweighs concerns about the economic impact of Russia’s invasion of Ukraine.

With price growth in the euro zone at a record high even before Moscow began its assault on February 24, the ECB’s more hawkish policymakers had been pushing for an early end to stimulus, paving the way for an interest rate hike this year.

While policy doves argued the war justified a pause for thought, February’s record 5.8 per cent inflation rate and the prospect