ECB's Lagarde Says There Are Some Signs of Economic Stabilization

The transcript discusses the euro area's economic conditions, highlighting muted inflation pressures and weak growth dynamics. It notes signs of stabilization and a mild increase in underlying inflation. Employment growth and rising wages support economic resilience. The Governing Council's policy measures provide monetary stimulus, ensuring favorable financing conditions, boosting consumer spending and business investment. The need for accommodative monetary policy is reiterated to support inflation pressures. The Council will monitor inflation developments and adjust policies as needed to achieve inflation targets.

What are the initial signs observed in the euro area's economic dynamics?

• A significant decrease in inflation

• Stabilization in growth slowdown and a mild increase in underlying inflation

• A rapid increase in employment rates

• A decline in consumer spending

What is the purpose of the monetary stimulus provided by the Governing Council's policy measures?

• To increase taxes on businesses

• To ensure favorable financing conditions for all sectors of the economy

• To reduce government spending

• To limit borrowing by households

How do easier borrowing conditions affect the euro area economy?

• They cause inflation to drop significantly

• They support consumer spending and business investment

• They lead to higher unemployment

• They decrease consumer spending

Why does the Governing Council emphasize the need for a highly accommodative monetary policy?

• To support underlying inflation pressures and headline inflation

• To increase interest rates

• To reduce the euro area's GDP

• To decrease the money supply

What is the Governing Council's stance on adjusting its instruments?

• They are ready to adjust all instruments as needed to ensure inflation moves towards its aim

• They are reluctant to make any changes

• They will only adjust instruments if inflation decreases

• They plan to eliminate all instruments