ECB Hikes Deposit Rate by 25 Basis Points to 3.5%

The video discusses a 25 basis points rate hike, expected due to inflation concerns and declining GDP, indicating a potential recession. Despite past panic subsiding, inflation fears persist, necessitating further rate hikes. The central bank faces a balancing act among 20 economies, aiming to ensure policy effectiveness and inflation control.

What was the expected change in basis points discussed in the video?

• 75 basis points

• 50 basis points

• 25 basis points

• 10 basis points

What economic condition is the rate hike potentially leading to?

• Economic boom

• Recession

• Stagflation

• Deflation

Despite the panic being over, what remains a concern according to the video?

• Housing market crash

• Stock market volatility

• Inflation fears

• Unemployment rates

What is the anticipated timeline for the next potential rate hike?

• Next year

• Next month

• Next week

• In July

What challenge does the governing council face according to the video?

• Balancing policies across different economies

• Increasing employment rates

• Reducing government debt

• Improving trade relations