of inflation targeting were joined later on by a number of developing countries ( for example brazil, south africa and thailand ) as well as by some east european transitional economies ( such as poland, the czech republic and hungary ). with hindsight, the policies pursued within this framework have been a success, particularly in those countries which – starting from a relatively high inflation level – needed to bring inflation expectations back into line with the central bank ’ s objective. but also other countries ( like norway ) with no particular difficulties in terms of anchoring inflation expectations have moved in this direction, presumably because their central banks were convinced of the benefits per se of the strategy. at present some twenty central banks have adopted an inflation targeting framework 4, and some observers would add a few more to that number. the monetary policy strategy of the eurosystem the eurosystem has not followed the same route. in october 1998, the governing council of the ecb dismissed the adoption of either inflation or monetary targeting and decided instead to select a strategy of its own, which aims at maintaining price stability over the mediumterm. the idea was to develop a credible and flexible, tailor - made strategy that would allow for timely responses to a changing environment, while keeping in clear focus the objective of price stability. and it was necessary to take account of two key factors of that time : the regime shift implied by economic and monetary union ( emu ) and the heightened uncertainty that surrounded the introduction of the single currency. whilst it was important to build on see kydland f. e. and prescott e. c. ( 1977 ), " rules rather than discretion : the inconsistency of optimal plans ", journal of political economy, 85, 473 - 92 and barro r. j. and gordon r. ( 1983 ), " a positive theory of monetary policy in a natural rate model ", journal of political economy, 91, 589 - 610. see rogoff k. ( 1985 ), " the optimal degree of commitment to a monetary target ", quarterly journal of economics, 100, 1169 - 1190. cukierman a. ( 2007 ), “ central bank independence and monetary policymaking institutions - past present and future ”, cepr discussion paper 6441, september. see c. berg ( 2005 ) : “ experience of inflation - targeting in 20 countries ”. economic review, 1. sveriges riksbank. state - of - the - art economic research and on

the medium term despite the raising of the snb policy rate is attributable to stronger inflationary pressure from abroad and the fact that price increases are spreading across the various categories of goods and services in the consumer price index. the new forecast puts average annual inflation at 2. 9 % for 2022, 2. 4 % for 2023 and 1. 8 % for 2024 ( cf. table 1 ). without today ’ s snb policy rate increase, the inflation forecast would be even higher over the medium term. global economic outlook i will now move on to the economic outlook. global growth momentum has continued to slow down. at the same time, inflation in many countries is markedly above central banks ’ targets. accordingly, numerous central banks have further tightened their monetary policy. in our baseline scenario for the global economy, we expect this challenging situation to persist for now. global economic growth is likely to be weak in the coming quarters, and inflation will remain elevated for the time being. over the medium term, however, inflation abroad should return to more moderate levels, not least due to the increasingly tighter monetary policy in many countries. our scenario for the global economy is subject to significant risks. the energy situation in europe could worsen again. at the same time, high inflation could become embedded and require renewed stronger monetary policy responses abroad. finally, the coronavirus pandemic remains an important source of risk for the global economy. swiss economic outlook what is the economic outlook for switzerland? gdp grew at an annualised rate of 1. 0 % in the third quarter. economic momentum thus remained similarly modest as in the preceding quarters. while many service industries fared well, there was a renewed slight decline in value added in manufacturing. the situation on the labour market remained positive. employment continued to rise, and unemployment decreased again slightly. overall production capacity has been well utilised. switzerland ’ s gdp is likely to grow by around 2. 0 % this year. however, weaker demand from abroad and the high energy prices are likely to curb economic activity markedly in the coming year. against this backdrop, we expect gdp growth of around 0. 5 % for 2023. page 2 / 4 berne, 15 december 2022 thomas jordan news conference our forecast for switzerland, as for the global economy, is subject to high uncertainty. a stronger economic downturn abroad or a pronounced energy shortage in switzerland would, in particular, have a negative effect. monetary policy outlook ladies and gentlemen, allow me to