Uncertainty about transmission arises from the fact that the euro area has not been through a sustained phase of rate hikes since the mid-2000s and has never seen rates rise so quickly. And this raises the question of how quickly and forcefully monetary policy will be transmitted to firms – via interest-sensitive spending – and households, via mortgage payments.
There was unanimous agreement within the Council on the need for action, and broad consensus on the package of measures as a whole, although there were differing views on the individual measures. While the effects of some of them are uncertain, there is no reason to doubt their overall effectiveness.