Lagarde Hails ECB's `Surgical' Support for Economy Amid Virus

The transcript covers a discussion on the ECB's decision-making process regarding rate cuts and quantitative easing (QE). It addresses questions about the Governing Council's support for rate cuts and the implications of QE on asset purchase programs. The ECB's unanimous decision to implement a 120 billion asset purchase program is highlighted as the most efficient response to current market sensitivities. The transcript also discusses the flexibility and organization of the asset purchase program, ensuring alignment with capital keys.

What was one of the reasons mentioned for not implementing a rate cut?

• Political instability

• Strong economic growth

• High inflation rates

• Lack of support within the Governing Council

What was the unanimous decision made by the ECB Governing Council?

• To implement a new tax policy

• To increase interest rates

• To adopt an additional 120 billion asset purchase program

• To reduce government spending

What was the main focus of the tools chosen by the ECB Governing Council?

• To promote exports

• To address current market risks

• To increase employment

• To reduce inflation

How does the ECB plan to organize the asset purchase programs?

• By focusing only on government bonds

• By increasing interest rates

• By using all embedded flexibilities

• By reducing the number of assets

Towards what will the asset purchase program converge at its end?

• Capital keys

• Higher interest rates

• Increased government spending

• Lower inflation