Economics
Mario Draghi Is Watching His ECB Rate Hike Slip Over the Horizon
- ECB has acknowledged that downside economic risks are dominant
- Draghi’s eight-year presidency ends after meeting in October
This article is for subscribers only.
The window for Mario Draghi to raise interest rates is about to slam shut.
The European Central Bank president, whose term ends in October, acknowledged on Thursday that the euro zone’s economic risks have moved to the downside. While he stuck to policy language that leaves room for a rate increase after the summer, investors and economists take a dimmer view, suggesting borrowing costs won’t rise until after -- perhaps well after -- Draghi leaves.