While changes in monetary policy can have some impact in the very short run, the full impact on output is not normally felt for 12 to 18 months. It is largely because of these lags that the Bank aims to bring inflation back on target over an 18- to 24-month horizon.
As I noted earlier, the automatic fiscal stabilizers at the federal level will no longer have to be offset. What difference does that make for monetary policy? The most important factor is that fiscal policy will be more symmetric and predictable.