"If there are no setbacks in the pandemic or the geopolitical situation, it would logical for the ECB to hike its key interest rate at latest next year," he told newspaper Helsingin Sanomat in an interview.

Rehn, who sits on the ECB Governing Council, also said the ECB will ensure that inflation will remain moderate in the medium term.

In a policy turnaround, the ECB on Thursday acknowledged mounting inflation risks and opened the door to a possible rate increase this year.

Rehn said the governing council would be in a better position to assess inflation pressures, especially the impact of Russian power politics on energy prices, at its March meeting.

"However, I don't believe the tensions in Ukraine and in Europe would ease off rapidly but rather we should be prepared for a long war of nerves by Russia," he said.