ECB Rates to Be Restrictive as Long as Necessary: Lagarde

The video discusses the central bank's strategy to achieve a 2% medium-term inflation target. Despite a decline, inflation is expected to remain high, prompting a 25 basis point interest rate hike. The policy rates are deemed sufficient to help return inflation to target levels. Future decisions will be data-driven, considering economic and financial data, underlying inflation dynamics, and monetary policy transmission strength.

What is the medium term target mentioned in the text?

What action was taken regarding key interest rates earlier this month?

How long are the key interest rates expected to be set at restrictive levels?

What factors are considered in the data-dependent approach mentioned?

What are the three criteria flagged for several meetings?