Therefore, as interest rate decisions are inevitably accompanied by a high degree of discretion and decisions must be made in an environment of uncertainty, it would be unrealistic to assume that price stability could be maintained over short horizons, from month to month and from quarter to quarter.
Taking uncertainty into account underscores the fact that the objective of price stability must be set over the medium term. Even more important is that monetary policy credibility rests on a sound footing  4  BIS Review 66/2006  and that inflation expectations are firmly anchored, making it unnecessary for monetary policy to respond to every fluctuation in inflation.