FRANKFURT (Reuters). – If it observes second-round inflation effects, and a de anchoring of medium term inflation expectations, the European Central Bank Vice President Luis de Guindos said to a German newspaper.

Investors are betting on higher ECB interest rates as the ECB accelerated their exit from unusual stimulus.

Handelsblatt was told by De Guindos in a Sunday interview that the central bank would consider second-round effects as well as de-anchoring price expectations.

“If you see them, we’ll act,” he stated.

De Guindos answered questions about the risks for the European financial sector from the conflict in Ukraine. He stated that there are no liquidity issues, that companies are issuing bonds and stocks were volatile, but not experiencing “dramatic changes”.

He mentioned the activation of margin calls in commodities derivatives, which have led to increased collateral to cover any open positions.

He stated, “But based on our observations,” that those who are facing margin calls have not been able meet them.”