This can give rise to the so-called “financial accelerator” channel of the Monetary Transmission Mechanism (MTM), in which monetary policy works partly by affecting lending terms through its effect on asset values and so the net worth of borrowers. 3 But credit conditions also depend on the access to credit of the lenders themselves.
However, there is some evidence of deanchoring in consumer expectations surveys and tentative signs of de-anchoring in the distributions of market and survey-based measures.11  The possible de-anchoring of consumer expectations is worrisome because it could trigger a wage-price spiral. If inflation persists, consumers could become more attentive to it, more “backward looking” when forming expectations.