Mario Draghi’s last hurrah

Mario Draghi, the European Central Bank boss, steps down shortly. What has he achieved with his parting shot?

European Central Bank President Mario Draghi © CARLOS COSTA/AFP/Getty Images

European Central Bank head Mario Draghi
(Image credit: European Central Bank President Mario Draghi © CARLOS COSTA/AFP/Getty Images)

European Central Bank (ECB) governor Mario Draghi recently held his penultimate monetary policy meeting before he hands over to Christine Lagarde (formerly at the International Monetary Fund). Markets had hoped for fireworks from the man widely viewed as having "saved the eurozone" at the height of the sovereign debt crisis in 2012. So did he deliver? As expected, Draghi cut interest rates from 0.4% to 0.5%. He also restarted quantitative easing (QE). The ECB will buy €20bn of eurozone sovereign bonds every month, with no end date the purchases will continue until the ECB is ready to raise interest rates again, which may be a while.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.