ECB’s Muller: Central bank could outline rate hike plan for coming months in June

ECB could outline future rate expectations already at June policy meeting.

APP should end early July or a few weeks earlier; rate hike must not be far behind.

Current ECB policy inappropriately easy given high inflation.

Appropriate to raise rates into positive territory by year end; moves by 25 bps increments appropriate.

Rise in spreads consistent with changed ECB policy outlook.

Details of spread fighting tool may not need to be announced in advance; tool should be tailored to specific situation.