Lagarde Says Inflation to Stay Too High for Too Long

The ECB has kept interest rates unchanged, confirming its previous inflation outlook. Despite a marked drop in inflation due to base effects, domestic price pressures remain strong. Past interest rate hikes are effectively dampening demand, aiding in reducing inflation. The ECB is committed to achieving a 2% medium-term inflation target and will maintain current interest rates for a sufficient duration. Future policy decisions will be data-driven, ensuring rates remain restrictive as needed to control inflation.

What has the ECB decided regarding interest rates in the current assessment?

• To eliminate interest rates

• To increase the interest rates

• To decrease the interest rates

• To keep the interest rates unchanged

What is the expected trend for inflation according to the ECB's assessment?

• Inflation is expected to decrease rapidly

• Inflation is expected to fluctuate unpredictably

• Inflation is expected to remain high for a prolonged period

• Inflation is expected to stabilize immediately

How are past interest rate increases affecting the economy?

• They are causing inflation to rise

• They are having no effect

• They are boosting demand

• They are dampening demand and helping reduce inflation

What is the ECB's medium-term inflation target?

• 4%

• 1%

• 2%

• 3%

On what basis will the ECB make future interest rate decisions?

• Public opinion

• Data-driven assessment of inflation outlook and economic conditions

• Random selection

• Political considerations