[25] At the same time, the ECB’s Governing Council is fully aware that further ground needs to be covered in the next several meetings to exit from the prevailing highly accommodative level of policy rates. It should also be clear that any quantitative estimates are surrounded by significant uncertainty. One dimension of this uncertainty is captured by the range of estimates across models.
In particular, the impact tends to be larger in those models that embed a more elaborated financial block that supports real-financial amplification effects and models that feature stronger expectation and confidence channels as entailed in DSGE-type models.