There are, of course, lags in the BIS Review 34/1997  -2-  impact of monetary policy actions on the economy that are widely believed to be of the order of 12 to 18 months.
However, what may not have been widely appreciated was that the reductions in short-term rates that began in the spring of 1995 initially just reversed the runup in rates that occurred after the Mexican currency crisis and before the 1995 federal budget.