It is also shown that the disinflationary effects of monetary tightening are not yet clearly evident. This is true both for
the world's major currencies as well as for European currencies. The report then draws on new empirical evidence which shows
that the ECB's interest rate policy from 1999 to 2019 had the desired effect on inflation, but that this effect unfolded only
gradually. Thus, the price-dampening effects of the current tightening cycle have yet to materialise. The more monetary policy
is tightened now, the more disinflation will be amplified as non-monetary price shocks unwind. It therefore seems appropriate
to wait for the effects of the monetary policy measures taken so far before tightening further.