Chart 3 Scatterplot of the contribution of demand factor to short-term rates (x-axis) versus long-term rates (y-axis). (percentage points)  Source: ECB calculations. Note: The latest observation is for 14 February 2020.
Overall, the available evidence suggests that the ECB’s rate forward guidance has been and continues to be an effective monetary policy tool and that the transmission of forward guidance to financial conditions and the economy has remained stable over time.