Notably, forward guidance has emerged as a useful complement to existing tools, he adds. The introduction of Outright Monetary Transactions is according to Mr Praet an example of how communication added to the effectiveness of monetary policy tools.
The ECB reaffirmed its commitment to the price stability mandate, as the pricing-in of unwarranted denomination scenarios could be a potential serious obstacle to fulfilling the mandate. He adds, “The OMT communication – unusual as it was in substance, for the ECB and probably for the entire community of central banks – was in fact strictly coherent with our general communication approach.