ECB's Muller Supports Another `Significant' Rate Hike

The transcript discusses the European Central Bank's (ECB) actions to combat inflation, including interest rate hikes and the potential for future quantitative tightening. It explores the concept of the neutral rate, the impact of euro depreciation on inflation, and the economic challenges faced by Estonia due to rising energy prices. The ECB's policy is described as accommodative, with a need for further action to reach the neutral rate. The discussion also touches on the geopolitical context, including the war in Ukraine and its implications for Estonia.

What is the significance of the recent interest rate increases by the ECB?

How does the ECB view the relationship between monetary policy and inflation outlook?

What challenges does Estonia face regarding electricity prices and inflation?