4 Charts Looking Back On European Private Equity Markets

The ECB Hiked Rates Into A Crisis In 2011: 4 Charts Looking Back On European Private Equity Markets by Evan B. Morris, PitchBook

Lest we forget, Janet Yellen was not the first major central banker to hike rates 25 bps amidst an uncertain macro environment. Concerned about a continued increase in inflation in 2011, hawkish European Central Bank president Jean-Claude Trichet increased the benchmark rate 25 bps in two consecutive quarters. The benchmark rate went from 1% in 1Q to a 1.5% print announced in July 2011. The day of the second hike, Portuguese sovereign debt was downgraded to junk and in less than a year Greece’s creditors were forced to restructure the country’s sovereign debt to remain in...