The ECB has given a hint of adjusting its asset purchase program along three tools, such as time commitment, pace, and composition. A change in time and pace may be expected, but it is a less effective toll to influence exchange rate.
Since the euro area experiencing lower core inflation outlook, the ECB will choose a monetary tool that will help the Bank to correct the inflation outlook.
"The ECB could cut the deposit rate by 10bp and provide the market with forward guidance of further cuts. Another option would be to cut 20bp and signal its willingness to cut more if needed", argues Barclays.


Fed’s Anna Paulson Signals Rate Cuts May Come Later as Inflation Cools and Labor Market Stabilizes
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness
Thailand Economy Faces Competitiveness Challenges as Strong Baht and U.S. Tariffs Pressure Exports
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook




