Citi Says Inflation Data Supports a Hawkish ECB Stance

The transcript discusses the implications of a hawkish Federal Reserve on the European Central Bank (ECB) and its upcoming meeting. It highlights the ECB's considerations regarding growth and inflation data, the potential end of quantitative easing, and the timing of future rate hikes. The discussion also covers the ECB's policy tools, including forward guidance, and the importance of market expectations.

What is the main reason the ECB might adopt a more hawkish stance?

• Decreasing oil prices

• Weakening exchange rate

• Stronger wage data and rising inflation

• Supportive growth data

What is the primary question regarding the ECB's quantitative easing program?

• Whether the ECB will change its inflation target

• Whether the ECB will lower interest rates

• Whether the ECB will announce the end of net asset purchases

• Whether the ECB will increase asset purchases

When does the market expect the ECB to end its asset purchases?

• By the end of this year

• In the next six months

• By the end of next year

• In the next two years

What is one of the key policy tools available to the ECB?

• Increasing tax rates

• Forward guidance

• Reducing government spending

• Currency devaluation

What is the expected gap between the end of quantitative easing and the first rate hike?

• Twelve months

• Nine months

• Six months

• Three months