Under these conditions, it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached. This is why our policy needs to be decided meeting by meeting and has to remain data-dependent. Second, we face uncertainty about the strength of monetary policy transmission.
The strength of transmission connects current decisions with expectations of future policy and therefore affects the policy stance. How strong transmission turns out to be in practice will determine the effect of a given rate hike on inflation, and this will be reflected in the expected policy path.