Does monetary policy have an impact on expected inflation in the euro zone?

"Anchoring inflation expectations" at the desired level is the key objective of monetary policy in the euro zone and is the measure of the credibility of monetary policy. We seek to determine whether or not monetary policy decisions have an impact on expected inflation in the euro zone, using two measurements of expected inflation: A measurement on financial markets, inflation swaps; A survey measurement: expected inflation in the European Consumer Survey. We see that monetary policy decisions (changes in the repo rate, in the 2-year interest rate, in the monetary base) have no significant impact on expected inflation. If monetary policy does not have an impact on expected inflation, monetary policy cannot be credible.