Euro-Area Inflation Remains Negative

The video discusses the European Central Bank's (ECB) upcoming inflation forecasts, expected to be higher than previous ones, marking a positive shift. However, achieving the 2% inflation target remains challenging, with current projections at 1.6% by 2018. The ECB's policies, including low rates and a weaker euro, have positively impacted the German economy, boosting consumer spending and reducing unemployment. Despite these benefits, skepticism persists in Germany due to low returns on savings. The ECB's ability to raise rates hinges on reaching its inflation goals, which is still a distant prospect.

What role has the ECB played in the German economy according to the text?

What challenges does the ECB face in raising interest rates?