This is because it is quite diﬃcult for monetary policy to affect current price developments. Our measures only really take full effect after a time lag. Economic adjustment processes frequently extend over a longer period of time. Looking ahead anchors inﬂation expectations. “Realistic” means that our wording should not lead people to develop any illusions.
We should counter the impression and claims that we could ﬁne-tune inﬂation right down to the decimal, because we can’t (Tonne)! The same also applies to the time horizon. We should not set a deadline in advance down to the precise quarter by which we intend on achieving our aim.