The European Central Bank faces a huge challenge in the months ahead as monetary policy has to be recalibrated to reflect a post “whatever it takes”-world. The financial turbulence in recent days highlights how difficult it is to roll back the extremely easy monetary policy, but ECB must respond to the improved economic circumstances to regain control over the policy narrative. It is time to say goodbye to the extraordinary measures and move focus to the slow normalization of interest rates.



180207 ECB’s monetary challenges