Oct 31 Bulgaria 2 Report from London Nejra Cehic

The ECB noted a slight increase in eurozone inflation, rising to 0.4% from a five-year low of 0.3%. Despite not meeting its 2% target since 2013, ECB President Mario Draghi predicts low price gains in the coming months, with gradual increases expected in 2015 and 2016. The ECB has implemented unprecedented stimulus measures, including cutting interest rates, offering long-term loans, and purchasing private sector assets, but has not yet bought government bonds. These actions have shown some positive economic reactions, such as improved business confidence and increased factory activity. The ECB is expected to maintain its current benchmark and deposit rates in its upcoming policy meeting.

What was the eurozone inflation rate in comparison to the five-year low in September?

• 0.6% compared to 0.4%

• 0.3% compared to 0.2%

• 0.4% compared to 0.3%

• 0.5% compared to 0.3%

Which of the following measures has the ECB NOT taken to combat deflation?

• Purchasing private sector assets

• Buying government bonds

• Offering long-term loans to banks

• Cutting interest rates to record lows

What economic indicators showed improvement following the ECB's measures?

• Stock market indices

• Business confidence and factory activity

• Housing market prices

• Unemployment rates

What is the predicted action of the ECB regarding the benchmark rate in the upcoming meeting?

• Abolish the rate

• Increase the rate

• Decrease the rate

• Leave it unchanged

What is the current deposit rate set by the ECB?

• -0.5%

• 0.5%

• 0.0%

• -0.2%