This does not constitute a change of strategy; it is an attempt to explain our monetary policy stance even more simply and clearly – so that it is understood; if possible, by all market participants. It outlines our likely monetary policy response based on current data and the Eurosystem’s two-pillar approach to analysing risks to price stability.
As a result, the market was unpleasantly surprised that a further capital announcement was needed so soon. Still, market spreads actually declined in the days after the announcement and only started to widen again after Deauville.