BIS central bankers’ speeches  3  stress, flexible exchange rates and independent monetary policy allow us to idiosyncratically respond to shocks in line with domestic economic conditions, which is crucial in calming markets. Not monetary policy alone Ladies and gentlemen, we have monetary policy space to keep prices stable. But price and financial stability are but one component of a vibrant economy.
Furthermore, in recognition of the fact that monetary policy is inherently forward-looking, and can realistically be successful in the medium term, the Bank now only specifies a mediumterm inflation objective (3-6 percent) and reviews inflation projections regularly.