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

philipp hildebrand : the virtues of flexible financial markets - a central banking perspective summary of a speech by mr philipp hildebrand, member of the governing board of the swiss national bank, at the cfa institute annual conference, zurich, 22 may 2006. the complete speech can be found in german on the swiss national bank ’ s website ( www. snb. ch ) * * * summary rapid technological change and market liberalization have been the driving forces behind the remarkable evolution of global financial markets over the past three decades. the consequences of this development include a geographic rearrangement of global capital markets, a fast pace of product innovation and changes in the nature and composition of financial market participants. the benefits associated with today ’ s flexible financial markets are manifold. financial markets have become much more efficient in allocating capital. new products enable a better distribution of risks and the liquefaction of previously illiquid assets. they have also increased market transparency. as a result, modern financial markets facilitated innovation and likely enhanced economic growth. moreover, they have contributed to make economies more resilient to shocks. these extensive benefits notwithstanding, modern financial market also entails new risks. these risks tend to elicit calls for increasingly far - reaching regulation. while some regulation may indeed be required to guarantee the integrity of financial markets, the threshold for such regulation should be set high. regulation should only be considered if the objective is abundantly clear and if there is overwhelming evidence that market participants lack the incentives or the capability to adequately manage these risks themselves. rather than seeking regulation, market participants, central banks and regulators should focus on strengthening an already active dialogue with the aim of furthering our understanding of new types of risk associated with modern financial markets.