What Factors Determine the ECB's Rate Path?

The European Central Bank (ECB) is being cautious about raising interest rates to avoid past mistakes made in 2008 and 2011. They are concerned about growth risks, particularly from external factors like trade, and are uncertain about how these risks will affect inflation, their primary mandate. The ECB is monitoring the situation closely, maintaining that the domestic economy remains strong. Over the summer, the ECB plans to focus on its reinvestment strategy after asset purchases end, but no major announcements are expected until later in the year.

What are the ECB's primary mandates regarding inflation?

Evaluate responses using AI:

OFF

What is expected from the ECB regarding its reinvestment strategy?

Evaluate responses using AI:

OFF