ECB President Lagarde said on Saturday that the sell-off in the bond market is leading to higher borrowing costs in the Eurozone, dragging down economic growth, and ultimately curbing inflation. Lagarde said that this will make it harder for consumers to bear the rise in fuel prices caused by the Iran conflict. The situation is more serious than what the ECB predicted last month. “Despite economic growth showing resilience, financing conditions have tightened, and long-term interest rates have risen markedly since our last meeting,” Lagarde told participating central bank presidents and finance ministers in Bangkok. “This will slow economic growth and make the price transmission effect weaker than our September forecast.”

ECB President Lagarde said on Saturday that the sell-off in the bond market is leading to higher borrowing costs in the Eurozone, dragging down economic growth, and ultimately curbing inflation. Lagarde said that this will make it harder for consumers to bear the rise in fuel prices caused by the Iran conflict. The situation is more serious than what the ECB predicted last month. “Despite economic growth showing resilience, financing conditions have tightened, and long-term interest rates have risen markedly since our last meeting,” Lagarde told participating central bank presidents and finance ministers in Bangkok. “This will slow economic growth and make the price transmission effect weaker than our September forecast.”