- With increased risk of persistent inflation, new new asset purchases become less necessary
The headline is a bit of a blow to current market pricing, which is pushing for a 10 bps rate hike in June (yes, you read that right). I've mentioned before that feels overdone and the ECB will have one chance i.e. March meeting to lay down the gauntlet.
I imagine if Lagarde were to one to have said that July may be a bit too quick, we'd see a much more impactful move in the market.
