ECB Deposit Rate Won't Go Above 0.25% for Five Years, Pimco Says

The video discusses the European Central Bank's (ECB) policy rate projections, predicting low rates over the next five years due to potential recessions in Europe and the US. It compares global interest rate trends, noting that the Federal Reserve may raise rates slightly, but they will remain historically low. The video also highlights the impact of demographics on economic growth, emphasizing that Europe will not face the same population decline as Japan, but will experience slower growth.

What is the expected highest ECB policy rate in the next five years?

• Low threes

• 1%

• Plus 0.25%

• Minus 0.4%

Which central bank is expected to keep its policy rate low for the foreseeable future?

• Bank of England

• Federal Reserve

• Reserve Bank of India

• European Central Bank

What is one of the factors holding back the ECB's policy rate?

• Demographics

• Technological advancements

• Political instability

• Trade agreements

How is Japan's population expected to change by 2050?

• Increase to 200 million

• Remain at 125 million

• Decrease to 100 million

• Increase to 150 million

Which European country is experiencing a population decline?

• Spain

• Italy

• France

• Germany