In addition, it is difficult to say ex ante what terminal level of official rates would reassure households and businesses about the determination of the central bank to reducing inflation, thus minimising the risks of a de‑anchoring of expectations and preventing the emergence of spirals between prices and wages.
–  Second, high uncertainty also influences the distribution over time of the effects of rate hikes on inflation and growth. Putting together the econometric evidence we have, in the euro area a rate hike exerts its largest effect on inflation after one or two years; however, it also has its largest impact on GDP growth after about a year and a half.