ECB is urged to play waiting game on policy

The ECB’s second rate hike of the year, a move that will lift euro zone rates to 1.5 per cent, is seen as a virtual certainly on Thursday after the bank’s recent reiterations that it is in a mode of “strong vigilance” – a phrase traditionally used to signal an upcoming rate rise.

Beyond that, Mr Gurría, who studied at Leeds University as a postgraduate, warned against tightening policy too quickly.

“I would not recommend aggressive tightening and I don’t think we will have it,” he said.

“It is right to send a signal but I would give it some time. Let’s see where things settle,” he said, adding that commodity prices had fallen and core euro zone inflation was contained while growth in the bloc was slowing.