G-7: ECB's Visco Says July Is 'Perhaps' Time to Start Rate Hikes

The transcript discusses the challenges of inflation and the need for monetary policy normalization. It highlights past risks like deflation and recession due to the pandemic and the use of unconventional monetary measures, such as negative interest rates. The discussion then shifts to the possibility of moving out of negative interest rates due to returning demand and stable inflation expectations. A gradual approach to raising interest rates is emphasized to avoid market uncertainty. The transcript concludes with the importance of data-driven decision-making amid high uncertainty, particularly due to geopolitical events like the Ukraine invasion.

What is the significance of inflation expectations being around 2%?

What factors contribute to the uncertainty in the current economic situation?