Empirical research conducted by ECB staff suggests that the CBPP has been successful in achieving its goals (Beirne et al., 2011). Not least due to strong and timely action by central banks and governments, worldwide signs of stabilisation in financial markets emerged, with spreads returning to pre-Lehman levels and positive output growth resuming in the second half of 2009.
Indeed, before announcing our interest rate decisions eight times a year, we assess all of the factors that have implications for the balance of demand and supply in the economy, and thus for the conduct of monetary policy. Exchange rate movements are among those factors.