Market pricing of a rate cut from the European Central Bank as early as March has withered since the start of the new year. Now, officials seem to be questioning even the notion of a reduction in April — highlighting another pocket of possible mispricing. Also at peril may be traders’ estimate of how low the ECB’s benchmark rate could really go this year.

“It is not helping our fight against inflation, if the anticipation is such that they are way too high compared with what’s likely to happen,” Lagarde said.

All this is clearly not the news that the markets were positioned for at the start of the year.

https://www.zerohedge.com/markets/ecb-pricing-gets-dose-reality-check-all-way-davos