ECB's Rehn Says It 'Makes Sense to Continue Rate Cuts'

The transcript discusses the Eurozone's economic outlook, highlighting both positive and negative aspects. Inflation is moving in the right direction, with disinflation on track and employment remaining robust. However, the growth outlook is subdued, prompting rate cuts. The discussion covers the impact of these cuts on market expectations and the potential for future reductions. The concept of a neutral interest rate is also explored, emphasizing its importance in monetary policy analysis.

What is one positive aspect of the Eurozone's current economic outlook?

• Interest rates are rising.

• Inflation is increasing rapidly.

• Growth outlook is very strong.

• Employment is holding up robustly.

Why did the Eurozone cut rates in December?

• To increase inflation.

• To boost employment.

• Due to a weakened growth outlook.

• To strengthen the currency.

What factor is crucial in determining the scale and speed of future rate cuts?

• Political stability.

• Incoming data and comprehensive analysis.

• Public opinion.

• Global oil prices.

By when does the speaker expect to leave the restrictive territory?

• By the start of spring.

• By midsummer.

• By the end of autumn.

• By the end of the year.

What is the neutral rate of interest described as?

• A measure of inflation.

• A fixed interest rate.

• A concrete policy-making tool.

• An analytical framework for monetary policy.