ECB rate hikes under Trichet (2011)
The ECB, led by Jean-Claude Trichet, raised rates twice in 2011 as oil and commodity prices climbed during the Arab Spring. Inflation had pushed above target. Growth still looked fragile across the euro area.
The hikes squeezed weaker economies just as the sovereign debt crisis deepened in Greece, Ireland, and Portugal.
Mario Draghi reversed both hikes within months of taking over as ECB president in late 2011.
It shows the risk of tightening into an oil-driven inflation spike while the economy is still shaky, the exact bind the ECB faces now.
