ECB's Nagel says ECB mandate requires to act if inflation expectations de-anchor; "we'll see in June"; baseline includes two rate hikes

ECB's Nagel's comments highlight a need for vigilance on inflation expectations, suggesting that the ECB is prepared to increase rates if those expectations become unanchored.

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Context

His mention of a baseline including two rate hikes indicates a proactive rather than reactive approach, which may signal tightening policies ahead. This could impact EUR strength and influence fixed-income markets as traders adjust expectations for future rate paths.

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