ECB 'will do what is necessary' to tame inflation, Bank of France governor tells CNBC

The European Central Bank signaled it will "do what is necessary" to keep inflation on target, reinforcing expectations for a rate hike at the next meeting. Markets are already overwhelmingly pricing in tighter policy, making the statement supportive of a hawkish ECB stance and potentially higher eurozone yields.

Analysis

The European Central Bank signaled it will "do what is necessary" to keep inflation on target, reinforcing expectations for a rate hike at the next meeting. Markets are already overwhelmingly pricing in tighter policy, making the statement supportive of a hawkish ECB stance and potentially higher eurozone yields.