This is due to the fact that interest rate measures work through to inflation via all sorts of complicated macro-economic processes, with inflation right at the end of the chain. Direct inflation targeting, too, calls for a sufficient measure of stability of these relationships. Obviously effectiveness is in any case highly dependent on the quality of the inflation forecasts.
To paraphrase an old adage, “we have brought the Y2K horse to water, and he appears to be drinking!” BIS Review 91/1998  -3-  As far as financial institutions are concerned, I am encouraged by the progress that has been made over the past year, and there is every reason to be confident that our financial system will be ready.