The less responsive short term rates are to this upward pressure, and the stronger the buildup of inflationary pressures in the wake of depreciation, the steeper the yield curve is likely to get. Long-term borrowing costs will take the burden of slow policy responses to a widening interest differential and currency weakness.
The real economy effects of being behind the curve with short rates will be relatively small in the near term, but working against the longer term direction I think we want to go. Lower short rates might generate somewhat more near term consumption growth for less investment growth in the longer-run.