The ECB can update the forecast of a rate increase with the approach of folding QE

(Reuters) – The European Central Bank may give a new forecast of the timing of the first rate increase with the approach of the date when a large-scale asset purchase program will be completed, François Villeroy de Galo, an official of the ECB and the head of the Bank of France, said on Monday.

Will the decision to complete the purchase of assets taken at the September or December meeting of the ECB does not play a big role, said Villeroy de Galo.

As we approach this decision, the ECB will adjust its forecast for interest rates, the official said. The regulator’s statement on the results of the April meeting says that rates will remain at current levels for a long period of time, much longer than the horizon of buying up assets.

“As for the first rate increase, we can give an additional forecast on its timing,” much longer “- it’s at least several quarters, but not years, (and we can also give) additional guidance on its dependence on the inflation forecast,” – said Villeroy de Galo.