- Euro-zone inflation expectations fell significantly in April, with expectations for the next 12 months falling to 4.1% and three years ahead to 2.5%.
- The drop in inflation expectations supports the European Central Bank's plan to ramp up interest rates this summer.
- German bonds extended gains after the announcement and traders reduced bets for further interest-rate hikes.
- ECB President Christine Lagarde reaffirmed that interest rates will rise further to control prices.
ECB Says Consumer Inflation Expectations Fell Significantly
Euro-zone inflation expectations fell in April, supporting the ECB's plan to raise interest rates this summer. ECB President Christine Lagarde reaffirmed interest rates will rise further to control prices.