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Monetary policy strategy
Constitutional and legal mandate
Significance of price stability
Appropriate monetary conditions
Taking economic activity into account
Numerous uncertainties
Monetary policy strategy
Definition of price stability
Purpose of inflation forecast
Quarterly publication of inflation forecast
Indicators upon which inflation forecast is based
Communicating through inflation forecast
Review of monetary policy based on inflation forecast
Libor target range
Monetary policy instruments
Communicating through inflation forecast
Since the inflation forecast published by the SNB takes the Governing Board’s last interest rate decision into account, the probable course of future monetary policy can be deduced from the shape of the inflation curve. The inflation forecast is thus an important communication tool.