Lagarde: ECB Won't Raise Rates Until Bond Purchases Stop

The video tutorial discusses the forward guidance approved by the Governing Council, focusing on three criteria necessary for rate hikes: inflation at target, durability, and strong underlying inflation. It emphasizes the sequence of actions, stating that rate hikes will not occur until net asset purchases are completed. The assessment of net asset purchases will be determined in March based on available data.

What is one of the criteria mentioned for considering rate hikes?

• Inflation at target

• Inflation at 3%

• GDP growth above 4%

• Unemployment rate below 5%

Which of the following is NOT a criterion for rate hikes?

• High consumer confidence

• Durability of inflation

• Inflation at target

• Strong underlying inflation

What must be completed before considering rate hikes?

• Net asset purchases

• Tax reforms

• Infrastructure projects

• Trade agreements

What is the sequence mentioned in relation to rate hikes?

• Simultaneous rate hikes and net asset purchases

• Rate hikes before net asset purchases

• Net asset purchases before rate hikes

• Rate hikes only if inflation is above 3%

When will the assessment of net asset purchases be determined?

• In April

• In January

• In February

• In March