Moreover, and again in contrast with the other devaluations of this period, the impact of the drachma’s devaluation on inflation was strictly contained. What accounts for the drachma’s successful exit from one central rate to another? In my view, the key ingredients of the successful devaluation were the following.
In addition, we adjust the interest-rate spread to the ECB in the light of the foreign-exchange situation. We take account of the krone's position vis-à-vis the euro, and whether there has been any sustained inflow or outflow of foreign exchange. These adjustments can take place concurrently with adjustments to the ECB's interest rate, or at other times.