ECB's Lagarde: Larger September Hike 'Appropriate' If Needed

The transcript discusses the end of net asset purchases on July 1st and the intention to raise key interest rates by 25 basis points on July 21st. It also outlines plans for another rate hike in September, contingent on the medium-term inflation outlook. The optionality principle is highlighted, indicating that if inflation does not improve, faster action may be taken. The commitment to these plans is data-dependent.

What action is planned for July 1st regarding the asset purchase program?

• Increase net asset purchases

• Decrease net asset purchases

• End net asset purchases

• Maintain current asset purchase levels

By how many basis points does the committee intend to raise the key interest rates at the July 21st meeting?

• 10 basis points

• 50 basis points

• 25 basis points

• 75 basis points

What condition could lead to a larger rate hike in September?

• Decrease in consumer spending

• Improvement in employment rates

• Deterioration of the medium-term inflation outlook

• Stable inflation outlook

What principle allows for flexibility in the rate hike decision?

• Fiscal policy

• Monetary neutrality

• Optionality principle

• Inflation targeting

What is the commitment to rate hikes dependent on?

• Data dependency

• Public opinion

• Global economic trends

• Political stability