ECB's Lagarde suggests markets expecting rate hikes too soon

FRANKFURT, Oct 28 (Reuters) - European Central Bank President Christine Lagarde said on Thursday that financial markets appeared to be pricing in ECB interest rate hikes, or a rate "liftoff", much sooner than the bank itself.

Investors have been pricing in some chance of a hike by the end of 2022 despite pushback from the ECB Chief Economist Philip Lane and other policymakers.

"Our analysis certainly does not support that the conditions of our forward guidance are satisfied at the time of 'liftoff' as expected by markets, nor anytime soon thereafter," Lagarde told reporters after the bank's policy meeting.

"We really looked and very deeply tested our analysis of the drivers of inflation, and we are confident that our anticipation and our analysis is actually correct," she added.

The ECB has said its policy rates will stay at their current, record low levels until inflation is seen stabilising at 2% over the medium term.

The ECB's deposit rate is currently set at minus 0.5%, meaning that commercial banks have to pay to park their idle cash at the central bank.
Reporting by Francesco Canepa; Editing by Hugh Lawson

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