European Central Bank (ECB) President Christine Lagarde stated on Monday that the significant rise in long-term interest rates would slow economic growth and curb inflation to an extent greater than the ECB's September projections. She emphasized that, in the absence of signs of second-round effects, the ECB should adopt "moderate responses" to control inflation. Following these remarks, traders reduced their bets on ECB monetary tightening, with the market's expected probability of an October rate hike now falling below 40%. Lagarde also noted that current interest rate levels are at the upper end of the range that has a neutral impact on the economy, specifically the top of the 2% to 2.5% range. She also criticized governments' fiscal aid measures for not being temporary and precisely targeted.