ECB Raises Benchmark Interest Rate 25Bps to 3.25%

The transcript discusses recent economic data, focusing on core inflation cooling in April and its influence on decision-making. It highlights the role of a lending survey in assessing credit conditions, which contributed to a decision to adjust rates by 25 basis points. Despite inflation remaining high, the approach taken was cautious, with an emphasis on staying data-dependent. The discussion also considers whether a more significant rate change was possible, ultimately opting for a conservative strategy.

What was a key factor in the economic decision-making process discussed in the first section?

• Core inflation cooling in April

• Rising unemployment rates

• Increased consumer spending

• Decreased government spending

What did the lending survey reveal about credit conditions?

• Credit conditions remained unchanged

• Credit conditions were unpredictable

• Credit conditions were loosening

• Credit conditions were tightening

What was the basis for the decision to reduce rates by 25 basis points?

• Decreased consumer confidence

• Rising unemployment rates

• Tightening credit conditions and core inflation data

• Increased government spending

What is the ongoing issue mentioned in the final section?

• High inflation

• Rising unemployment

• Low consumer spending

• Decreasing GDP

What approach did decision-makers take regarding future actions?

• Aggressive

• Cautious

• Reckless

• Indifferent