A monetary policy reaction by the ECB to the exchange rate always reflects a concern about the implications of the exchange rate for prospective risks to price stability. As you will be aware, the ECB is considering the publication of its macroeconomic forecasts. This publication should provide an additional forward-looking element for the communication of economic analysis.
At the same time, the publication of forecasts will pose a number of additional challenges. There is, for example, the danger that the public will concentrate on the forecast figures, rather than on the analysis, and expect a mechanical reaction of monetary policy to the forecast.