ECB's Lagarde: Higher bond yields to slow growth, inflation

ECB President Lagarde confirmed that rising long-term bond yields are projected to slow growth and reduce inflation more than previously forecast, potentially lessening the need for further tightening. Despite this, Lagarde reaffirmed a cautious stance, indicating no imminent shift to easing and confirming a continuation of gradual interest rate hikes. The overall policy direction remains tightening, albeit with an acknowledgment of market-driven disinflationary pressures.