With this consideration in mind, our approach has often been characterised as “steadyhanded”. The ECB has acquired a reputation for moving interest rates in a steady and persistent fashion over time. This is a conscious choice. Such deliberate and persistent moves strengthen transmission, thereby proving effective in achieving our objective of price stability.
When a central bank enjoys a reputation for implementing monetary policy in a steadyhanded fashion, private sector expectations of future interest rates will move in a manner consistent with policy-makers’ intentions at all maturities in response to a policy announcement or measure.