ECB President Lagarde Comments on Bonds and Inflation
ECB President Lagarde announced that rising long-term interest rates and bond yields will slow down economic growth and inflation rates.
European Central Bank President Christine Lagarde stated in her speech at the European Parliament that the increase in long-term interest rates and bond yields will slow down growth and inflation processes.
Interest Rates and Growth
Speaking at the European Parliament in Brussels, European Central Bank President Lagarde emphasized that despite economic growth following a resilient course, there has been a notable recent rise in long-term interest rates.
Inflation and Secondary Effects
Lagarde stated that no second-round effects have been observed in inflation dynamics so far, making it imperative for the European Central Bank to respond appropriately and measuredly in order to keep inflation under control.
Energy Costs and Markets
While developments in the Middle East and waning hopes for a deal have driven oil prices up, reigniting inflation concerns, investors expect a new interest rate hike of approximately a quarter point from the European Central Bank next year.