PRAGUE: The European Central Bank could raise interest rates towards the end of the year, unless there is a “dramatic” escalation of the war in Ukraine, ECB policymaker Peter Kazimir told a news conference on Wednesday.

The ECB earlier said it may end asset purchases in the third quarter, a prerequisite for any interest rate increase, but has yet to give an expected timeline for a rate move, even as conservative policymakers are making the case for a hike this year.

ECB reckons with impact of war on eurozone’s doorstep

Kazimir added that he would like to exit negative interest rates within one year.

The ECB’s deposit rate currently stands at minus 0.5%.