Draghi Aggression Shows Pledges Backed by Rate Surprise
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Mario Draghi is showing that when he pledges action, he means it.
With yesterday’s surprise rate cut, the European Central Bank president delivered on an Oct. 2 promise to act if its price-stability mandate is threatened. The move comes more than a year after Draghi turned the tables on Europe’s sovereign debt crisis by saying he’d do “whatever it takes” to save the euro and presenting an unlimited bond-buying program. His policy announcements show a pattern that started two years ago with an unexpected rate reduction at his first meeting in charge.