Reuters reports, citing sources familiar with discussions
- Rate cut talk has been marginal in policy discussions
- ECB focusing on financing conditions, lending rates in policy decisions
- Much less focus on FX
I think this was plain to see for most people as the ECB themselves have emphasised that they will if need be, tweak PEPP rather than pursue other policy alternatives in responding to any unwanted economic developments.
Going with a rate cut just to quell euro strength is something that modern age central banks are unlikely to ever pursue, let alone with the ECB already seeing limited benefits from its negative rate policy so far over the past few years.
The part on there being limited focus on the euro exchange rate is something to take note of though. That just means the verbal interventions we are seeing as of late is roughly the extent they would be going to curb any strength in the currency - at least for now.