Jul 27
ECB – In search of the exit after the year that looks like a century
This period, one year ago the favorite game of market practitioners and observers was to blame and attack the ECB for increasing the refi rate to 4.25% and triggering the most abrupt market reaction since the onset of the single currency. Inflation was at 4% and overnight the market started to price in other 2-3 rate hikes before the end of 2008. Probably surprised by the spike in bond market volatility and by the massive tightening in financial conditions, the ECB immediately cared to flag the
