Lagarde: ECB Ready to Adjust All Tools as Appropriate

The video discusses the impact of rising energy and food costs on inflation, which is expected to remain high but decline later in the year. The Governing Council reaffirms its monetary policy decisions, including reducing asset purchases and ending the pandemic Emergency purchase program by March. Emphasis is placed on maintaining flexibility in monetary policy to stabilize inflation at a 2% target over the medium term.

What factors contributed to the unexpected rise in inflation in January?

• Improved supply chain efficiency

• Lower interest rates

• Decreased consumer spending

• Increased energy and food costs

What decision did the Governing Council confirm regarding asset purchases?

• To stop asset purchases immediately

• To gradually reduce the pace of asset purchases

• To maintain the current pace of asset purchases

• To increase the pace of asset purchases

When is the pandemic Emergency purchase program expected to end?

• At the end of April

• At the end of March

• At the end of February

• At the end of January

Why is flexibility important in the conduct of monetary policy according to the Governing Council?

• To decrease inflation below 1%

• To adapt to current uncertainties

• To increase employment rates

• To ensure rapid economic growth

What is the target inflation rate the Governing Council aims to stabilize at over the medium term?

• 2.5%

• 2%

• 1.5%

• 1%