ECB's Lagarde: Expect 50 Bps Hikes for a Period of Time

The video discusses the decision to raise interest rates significantly and at a steady pace to control inflation and ensure economic stability. It highlights the importance of a 50 basis point increase over time, reflecting on the progress made and the long-term strategy required to achieve the 2% inflation target. The discussion is based on the monetary policy statement, emphasizing the need for continued efforts in managing economic challenges.

What is the primary reason for the decision to raise interest rates significantly?

• To boost economic growth

• To decrease unemployment rates

• To ensure a timely return of inflation to 2%

• To increase consumer spending

What does a 'steady pace' in raising interest rates imply?

• A rapid increase in rates

• An unpredictable change in rates

• A consistent and gradual increase

• A decrease in interest rates

How much is the interest rate expected to rise at each step?

• 50 basis points

• 75 basis points

• 25 basis points

• 100 basis points

What does the progress made over the last few months indicate?

• Interest rates should be lowered

• More ground needs to be covered

• That the goal has been achieved

• The need to stop raising interest rates

What is the long-term strategy mentioned in the final section?

• To reduce interest rates immediately

• To maintain a steady pace over a long period

• To abandon the current policy

• To quickly achieve the target