ECB Rates to Be Restrictive as Long as Necessary: Lagarde

The video discusses the central bank's strategy to achieve a 2% medium-term inflation target. Despite a decline, inflation is expected to remain high, prompting a 25 basis point interest rate hike. The policy rates are deemed sufficient to help return inflation to target levels. Future decisions will be data-driven, considering economic and financial data, underlying inflation dynamics, and monetary policy transmission strength.

What is the medium-term inflation target mentioned in the video?

• 4%

• 1%

• 2%

• 3%

By how many basis points were the key interest rates raised?

• 10 basis points

• 15 basis points

• 25 basis points

• 20 basis points

What is the expected outcome of maintaining the current policy rates for a sufficient duration?

• No change in inflation

• Increase in inflation

• Decrease in inflation

• Stabilization of inflation

What approach will be followed for future interest rate decisions?

• Random approach

• Data-dependent approach

• Fixed approach

• Historical approach

Which of the following is NOT one of the criteria for decision-making mentioned in the video?

• Inflation outlook

• Economic data

• Political stability

• Monetary policy transmission