ECB's Lagarde Says 75 Bps Hike Is Not the Norm

The transcript discusses the European Central Bank's (ECB) efforts to normalize monetary policy, starting from December with the cessation of asset purchases and moving out of negative interest rates in July. It highlights the ECB's commitment to adjusting interest rates further, emphasizing that recent actions are part of a broader strategy rather than isolated decisions. The ECB's approach includes a front loading exercise to address deviations from targets, and it clarifies that a 75% interest rate increase is not the norm.

What significant step did the ECB take in December to normalize monetary policy?

• Introduced new asset purchase programs

• Ended asset purchases under PEP and AP

• Decreased interest rates to negative

• Increased interest rates by 75%

When did the ECB move out of negative interest rates?

• December

• July

• September

• March

What was the reason behind the ECB's front-loading exercise?

• To align with global interest rates

• Due to deviation from target

• To decrease inflation

• To increase inflation

What did the ECB clarify about the 75% interest rate increase?

• It is a temporary measure

• It will be decreased soon

• It is not the norm

• It is the new standard rate

What is the ECB's stance on future interest rate changes?

• Interest rates will be raised further

• Interest rates will be decreased

• Interest rates will be abolished

• Interest rates will remain unchanged