ECB Anticipates Ending Asset Purchases in December

The transcript discusses the expectations from Mario Draghi's press conference, focusing on how he will address lower growth forecasts and potential rate changes. It highlights the juxtaposition of lowering growth rates and cutting back on quantitative easing, which are typically opposing economic strategies. The discussion also covers the risks to inflation, with a target of 2%, and the implications of maintaining steady policy rates until at least September 2019. The key focus is on understanding the balance of risks and the ECB's approach to economic challenges.

What is one of the main expectations from Mario Draghi's press conference?

• Increase in bond purchases

• Introduction of new currency

• Lowering of growth forecasts

• Raising interest rates immediately

What economic action is typically taken when the economy is strong?

• Reducing interest rates

• Increasing taxes

• Lowering growth rates

• Cutting back on quantitative easing

Until when did the ECB say they would keep policy rates steady?

• End of 2018

• Summer of 2019

• End of 2019

• Summer of 2020

What is the ECB's target inflation rate?

• 2.5%

• 2%

• 1.5%

• 3%

What might be a concern if growth forecasts are lowered but inflation forecasts remain the same?

• Currency devaluation

• Higher interest rates

• Lack of justification for rate hikes

• Increased unemployment