ECB’s Lagarde Keeps Pushing Back on Rate Hike Bets and Hopes

A commuter train passes by the skyline with its financial district ahead of the European Central Banks (ECB) governing council meeting later this week in Frankfurt, Germany, on Oct. 25, 2021. Kai Pfaffenbach/Reuters

FRANKFURT—Tightening monetary policy now to rein in inflation could choke off the euro zone’s recovery, European Central Bank President Christine Lagarde said on Monday, pushing back on calls and market bets for tighter policy.

With inflation already twice its 2 percent target and likely rising further later this year, the ECB is coming under increased pressure to abandon its ultra easy monetary policy and tackle price growth that is eroding households’ purchasing power.