Markets dial back on deep ECB rate cuts this year

Refrain from central bank officials strike a more cautious tone about the outlook for easing

ECB chief Christine Lagarde: Market expectations of more aggressive easing could be counterproductive.

Traders in the world’s largest bond markets are heeding warnings from central banks and winding back bets on aggressive interest-rate cuts this year. 

European Central Bank (ECB) president Christine Lagarde added fuel to the selloff, saying in an interview at the World Economic Forum in Davos that market bets on a big easing of policy are a distraction.