A slowdown in eurozone economic growth and political uncertainty in Italy have not seemed to change the European Central Bank's resolve to wind down its €2.55 trillion bond-buying program in 2018.
The central bank is determined to end its quantitative easing later this year, though it may handle communication regarding future rate hikes more cautiously given recent economic developments, Reuters reported May 25, citing four sources close to the matter.
There is unusual unity among ECB policymakers about dialing back the extraordinary monetary stimulus, the sources said, though the timing of rate hikes will be the focus of any debates.
Markets project rates to rise about six months after the asset purchase scheme is ended, but some of the sources said this could be delayed if growth continues to weaken.
Economic growth in the eurozone slowed to an annual 2.5% in the first quarter, while business activity fell to its lowest in 18 months in May.
Minutes of the ECB's April meeting also showed increased uncertainty around the eurozone's economic outlook, with the central bank warning that growth could further slow down. Headline and core inflation slowed in April.
The ECB has not made its decision yet, and a decision on the fate of the stimulus program may come at the bank's July 26 meeting.
