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Saturday, Oct 17, 2026

European Central Bank Signals Slower Inflation Pass-Through Amid Sovereign Bond Selloff

European Central Bank President Christine Lagarde warned that a recent selloff in European sovereign bonds has sharply driven up borrowing costs, which will likely slow economic growth and reduce inflation pass-through more than previously projected. With the deposit rate currently at two point five percent, policymakers are pointing to December for the next potential interest rate hike as they balance slowing growth against persistent energy costs.
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