Rising Bond Yields to Curb Growth, Lagarde Warns

European Central Bank President Christine Lagarde has warned that rising bond yields will curb economic growth and limit the transfer of elevated energy costs to inflation.

In a statement on Monday, Lagarde said that long-term interest rates have risen notably since the bank's last meeting, which will slow growth and reduce pass-through by more than projected in their September exercise.

Lagarde attributed this slowdown to higher bond yields, which she believes will reduce economic expansion. This comes as the ECB had previously projected a certain level of inflation transfer from energy costs.