Sustained increase in market interest rates could derail the Eurozone economy's recovery from the coronavirus pandemic-induced slump, European Central Bank President Christine Lagarde said Thursday as the bank decided to accelerate its bond purchases over the next quarter.
"Market interest rates have increased since the start of the year, which poses a risk to wider financing conditions," Lagarde said in her introductory statement to the post-decision press conference. "If sizeable and persistent, increases in these market interest rates, when left unchecked, could translate into a premature tightening of financing conditions for all sectors of the economy," she added.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.