Draghi’s ECB consigned to history

Challenges ahead: A vendor waits for customers at a fresh produce store in Madrid. ECB officials now face the challenge of following through on their policy against a highly volatile backdrop for growth as well as inflation that could yet deteriorate markedly. — Bloomberg

FOR the first time in a generation, hawkish officials are taking control of the European Central Bank’s (ECB) steering wheel.

What began as a lone push by Klaas Knot of the Netherlands little more than three weeks ago – to consider a half-point interest-rate hike – has morphed into a whole new campaign of monetary tightening for the eurozone, as unveiled by president Christine Lagarde on Thursday.