Movements in the EONIA have further trickled down the EONIA swap curve at different maturities. The money market rate therefore does not unambiguously reflect the stance of monetary policy in the same way as in the past.
6  A “thick-modelling” approach can be used to estimate a very large number of monetary policy reaction functions using different indicators for inflation, economic activity and monetary and credit developments is estimated. This approach takes into account the degree of uncertainty stemming from the different signals policymakers receive from the broad range of indicators available before each Governing Council meeting.