Usage of useRef with debounce function

I have the following setup in a react component where I have used the debounce function from throttle-debounce package to log the input value for testing ( actually calling an API to fetch data ).

import React, { useState, useRef } from 'react';
import debounce from 'throttle-debounce/debounce';

const MyComponent = () => {
  const [localSearchQuery, setLocalSearchQuery] = useState('');
  
  const setSearchQueryInParams = debounce(2000, value => console.log(value))

  const setSearchQuery = value => {
    setLocalSearchQuery(value);
    setSearchQueryInParams(value);
  };

  return (
    <>
      <Input
        value={localSearchQuery}
        onChange={setSearchQuery}
      />;
    </>
  );
};

But, it’s not working as expected. If I type hello in the input box, I get the following output in console:

h
he
hel
hell
hello

However, if I wrap the debounce function with useRef, it works as expected

const setSearchQueryInParams = useRef(debounce(2000, value => console.log(value))).current

Input: hello
Output in console: hello

My question is, why the debounce function is not working without useRef and how useRef is functioning here to get the desired output?

Thank you for the help.