ECB LAGARDE SAYS BOND SELLOFF WILL SLOW INFLATION

What happened: ECB president Christine Lagarde said a bond selloff is making borrowing more expensive in the euro zone, curbing growth and ultimately inflation. Key numbers: ECB raised rates twice in the last four months; a further hike is expected in December, taking the policy rate to 2.75%. Why it matters: Lagarde said tightening financing conditions will slow growth and reduce pass-through more than projected in the ECB's September exercise. Bundesbank president Joachim Nagel said the job on inflation is not done and more may be needed.

ECB president Christine Lagarde said a bond selloff is making borrowing more expensive in the euro zone, curbing growth and ultimately inflation.

Lagarde said tightening financing conditions will slow growth and reduce pass-through more than projected in the ECB's September exercise. Bundesbank president Joachim Nagel said the job on inflation is not done and more may be needed.