As the “Financial Times” 14 recently pointed out, the decision to raise rates, at that time “controversial”, has been, 18 months later, “vindicated” by subsequent events.
The SNB’s differentiation between the two groups of indicator variables – on the one hand, short to medium-run indicators, such as a range of statistics including, prominently, inflation itself; on the other hand, monetary indicators, mostly relevant at a longer horizon – is clearly reminiscent of the ECB’s “two-pillar” strategy.