1536 GMT - ECB President Christine Lagarde says the ECB's baseline assumes that market expectations for interest rates are correct. This is effectively talking the bank into two rate hikes this year, given that the new projections show inflation above 2% through the forecast horizon, Pantheon Macroeconomics' Claus Vistesen says in a note. It's surprising that Lagarde would underwrite market expectations so explicitly, he says. "Overall, this was a strange mic drop at the end of a press conference in which Ms. Lagarde had otherwise emphasized the balanced risks facing the ECB, with upside risks to inflation and downside risks to growth." (edward.frankl@wsj.com)
(END) Dow Jones Newswires
March 19, 2026 11:36 ET (15:36 GMT)
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