Therefore, in this section I will focus on some of the issues that might challenge the effective implementation of MAP policy, such as 1) the scope of application of MAP tools and the risk of policy circumvention and leakages; 2) the possibility of symmetric (versus asymmetric) impact of the MAP measures; and 3) the speed at which policy tools can be adjusted.
While these risk factors are the same for growth, their effect would be the opposite: they would increase inflation but reduce growth. The ECB’s monetary policy Based on the medium-term inflation outlook, the Governing Council decided to raise the three key ECB interest rates by 75 basis points, on top of the 50 basis point increase announced in July.