CHART OF THE DAY: Uh-Oh, Here's What Happened The Last Time The ECB Hiked Rates In An Oil Spike

button more charts
button chart prev
button chart next

The big news of the day came around 8:30 AM, when ECB chief Jean-Claude Trichet hinted he might soon raise rates to deal with inflation.

Obviously surging Brent Crude is freaking him out.

But the world should be freaked out if history repeats. The last time ECB hiked rates was on July 3, 2008, right at the oil peak, but after global markets had already sliding in that fateful year.

It was a foolish move — tightening money to combat oil prices, when the financial system was showing strain. This time it’s European sovereigns showing strain. Is he repeating his error again?

chart of the day, ecb 2008 interest rate hike, mar 2011

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at