Lagarde Signals July Rate Hike, 'Weeks' After QE Ends

The transcript discusses the importance of gradualism and flexibility in monetary policy, highlighting the Governing Council's April decisions. It outlines the sequence for normalization, starting with ending net purchases under the asset purchase program, expected to conclude early in the third quarter. The first rate hike will follow, informed by ECB guidance, with timing deliberately left flexible. The process will be gradual, emphasizing normalization rather than tightening.

What does the term 'flexibility' refer to in the context of monetary policy adjustment?

What is the significance of the asset purchase programme in relation to net purchases?