ECB Hikes by 50 Basis Points, Commits to Same in March

The video discusses recent changes in interest rates by the ECB, highlighting the increase in the marginal lending facility and depot rate. It examines the ECB's monetary policy approach, including the rolling off of the AP portfolio and the need for further rate hikes to control inflation. The ECB's statement outlines a commitment to raise interest rates by 50 basis points in March, emphasizing a data-dependent approach for future decisions. The video concludes with an analysis of how these policies aim to reduce inflation by dampening demand and managing inflation expectations.

What was the unexpected change in the depot rate mentioned in the video?

• From 2% to 250%

• From 250% to 3%

• From 3% to 250%

• From 275% to 325%

What approach is the ECB taking towards future rate decisions?

• A quarterly review approach

• A fixed annual approach

• A meeting-to-meeting approach

• A bi-annual assessment approach

What is the ECB's plan for the AP portfolio starting from March?

• To maintain it at current levels

• To roll it off gradually

• To increase it significantly

• To double its size

By how many basis points did the Governing Council decide to raise the ECB interest rates?

• 50 basis points

• 75 basis points

• 25 basis points

• 100 basis points

What is the expected impact of keeping interest rates at restrictive levels?

• Increase in inflation

• Dampening of demand

• Boost in economic growth

• Rise in unemployment