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European Central Bank President Lagarde has pushed back against expectations for another back-to-back ECB rate hike, according to MUFG's Lee Hardman. Lagarde stressed higher long-term yields and the need for a measured response, comments that weighed on the euro. The pushback tempers market expectations for consecutive ECB rate increases.
Lagarde pushes back on back-to-back ECB rate hikes, tempering expectations for consecutive increases.
Reduced ECB rate-hike expectations lower the expected policy path, pulling German 10Y yields down.
Lagarde's pushback on further ECB hikes weighs on the euro versus the dollar.