Germany - Bundesbank Cuts Interest Rates

The transcript discusses the German Bundesbank's decision to lower the interest rate from 5.25% to 5.0% and the Lombard rate from 6.75% to 6.5% effective April 15. It emphasizes the importance of reducing inflation expectations and cautions against making rapid interest rate cuts.

What change did the Deutsche Bundesbank make to the discount rate effective April 15?

• Increased it from 5.0% to 5.25%

• Decreased it from 6.75% to 6.5%

• Decreased it from 5.25% to 5.0%

• Increased it from 6.5% to 6.75%

What was the new Lombard rate set by the Deutsche Bundesbank?

• 5.0%

• 6.5%

• 5.25%

• 6.75%

How has the Deutsche Bundesbank approached recent central bank council meetings?

• By focusing on other topics

• By avoiding discussions

• With detailed deliberations

• With brief discussions

What is the primary task of the Deutsche Bundesbank according to the transcript?

• Ignore inflation expectations

• Increase inflation expectations

• Reduce inflation expectations

• Maintain current inflation levels

Why is the Deutsche Bundesbank cautious about making interest rate cuts?

• To maintain high rates

• To follow other banks

• To avoid hasty decisions

• To increase inflation