However, all other factors that impart information on price developments will always be taken into  5  BIS Review 26/1999  account before a decision will be taken. Obviously, if a strong and abrupt appreciation of the euro were to occur, this would lead, all other things being equal, to downward pressures on price developments.
In such a situation, there would be more reason to lower the ECB’s interest rates, which might then, in turn, help counteract part of the prior exchange rate movement.