It won’t take much for the ECB to crush rate-cut bets next week

Christine Lagarde said traders who had taken dovish rate wagers ‘would be well-advised’ to revise their position

Christine Lagarde rebuked investors for underestimating the extent of hikes required. Picture: Michael Probst/AP

The stage is set for a clash between traders betting on interest rate cuts and Christine Lagarde, who is ready — once again — to hammer home the need to stamp out inflation.

The European Central Bank president rebuked investors six weeks ago for underestimating the extent of hikes required to bring soaring prices under control, then repeated the message at the World Economic Forum in Davos this month.