https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200624~d102335222.en.html  3/13  7/15/2020  The ECB’s monetary policy response to the pandemic: liquidity, stabilisation and supporting the recovery  This stabilising adjustment pattern in the behaviour of the money market reflects the internalisation by market participants of the feedback to the policy rate path from the inflation outlook, which has been prominently embedded in the enhanced formulation of our forward guidance since September 2019.
Our forward guidance firmly links the future path of policy rates to changing economic conditions that alter the trajectory of inflation towards our aim. Revisions to the inflation outlook directly affect market expectations of future policy rates, and thereby trigger corresponding adjustments in financial conditions.