ECB Sees Inflation 'Too High for Too Long,' Lagarde Says

The transcript discusses the European Central Bank's (ECB) concerns about high inflation and their commitment to returning it to a 2% target. To achieve this, the ECB has decided to raise key interest rates by 25 basis points. The decision is based on the current economic and financial data, as well as the dynamics of underlying inflation. The ECB's macroeconomic projections for the euro area indicate an upward revision of inflation for 2023 and 2024, mainly due to higher energy prices, while 2025 sees a slight downward revision.

What is the ECB's medium-term inflation target?

• 1%

• 2%

• 3%

• 4%

By how many basis points did the ECB decide to raise the interest rates?

• 25 basis points

• 10 basis points

• 15 basis points

• 20 basis points

What does the ECB's rate increase reflect?

• A change in fiscal policy

• A rise in unemployment rates

• An assessment of the inflation outlook

• A decrease in economic growth

What is the projected average inflation rate for the euro area in 2024?

• 4.5%

• 3.2%

• 5.6%

• 2.1%

What is the main reason for the upward revision of inflation projections for 2023 and 2024?

• Lower interest rates

• Improved labor market conditions

• Higher energy prices

• Increased consumer spending