ECB Decision Guide: Policymakers Set to Slow Pace of Hikes

The transcript discusses the European Central Bank's (ECB) considerations regarding interest rate hikes amidst high inflation rates. It explores the impact of US banking sector jitters on European banks and the potential tightening of credit conditions. The discussion also covers the relationship between quantitative tightening (QT) and interest rate decisions, emphasizing the importance of data dependency and meeting-by-meeting analysis for future ECB decisions.

What role does quantitative tightening (QT) play in the decision-making process of central banks?

In what ways might the European Central Bank's approach to policy differ from previous practices?