ECB President Christine Lagarde played down the possibility of a major change in the current monetary stimulus package when the bank's policy makers meet next month.

"it's too early," Lagarde said at a news conference in Lisbon on Friday. "there is no need to debate long-term issues," Lagarde said at a news conference in Lisbon on Friday about whether the European economic rebound could lead the European Central Bank to scale back its emergency bond-buying program. "

"our commitment to the eurozone is to maintain favourable financing conditions throughout the pandemic," she said. "

The acceleration of vaccination and the decline in the number of infections have heightened speculation that the ECB may soon start talking about cutting support. The European Central Bank stepped up its bond purchases this quarter in response to rising borrowing costs as the US economic recovery accelerated.

The ECB's governing council will meet on June 10th to assess the latest economic forecasts for the euro zone.

After Ms Lagarde's comments, the euro fell against all Gmur10 currencies, falling 0.4 per cent against the dollar to $1.2182. European bonds maintained their early gains, while Italian bonds performed well, with the yield on their 10-year bonds falling 4 basis points to 1.02 per cent.

Ms Lagarde also reiterated her view that higher inflation figures in 2021 would be temporary. Policy makers should not be fooled by the acceleration of price increases, she said, because the underlying factors for sustained growth are "not yet available."