ZURICH, (Reuters) – The European Central Bank may increase interest rates in order to end its bond purchase programme. Robert Holzmann, ECB policymaker, stated in an interview with Swiss newspaper NZZ that a rate hike could be made in the summer.

The eurozone inflation has risen to new highs over the past months. With this in mind, the ECB abandoned its pledge to not raise rates this fiscal year. Several policymakers openly advocate a halt to bond buying this year. This was previously a condition for any rate rise.

Holzmann stated that it is possible for the ECB not to follow its policy guidance, which states any increase in interest rates would be made “shortly” after quantitative easing has ended. Instead, they could move first.

Holzmann, the hawkish chief of Austria’s central banks, claimed that “when it comes to interest rate outlook,” the ECB has consistently indicated that an increase in interest rates should not be made until soon after bond purchases end. It is possible to make a first rate hike in the summer, before purchases end. A second one would be at the end. That would be my preference.