SPEECH DATE:  17 June 2020  SPEAKER:  Deputy Governor Henry Ohlsson  VENUE:  riksbank.se  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  Monetary policy during the economic crisis* The economic crisis the world economy is now experiencing is the deepest for many decades. Both demand and supply have declined substantially around the world. Economic policy faces major challenges. Sweden, which is a small open economy, has been severely affected by the reduced economic activity in the world around us. Naturally, we have also been affected by how international economic policy to deal with the crisis has been formulated. I will in this speech highlight three challenges that monetary policy has faced during the spring. These challenges have by no means disappeared, we will continue to deal with them. The first challenge has been that the financial markets function less smoothly during severe economic crises. This has been an important base for the Riksbank's monetary policy during the spring. Monetary policy aims to attain the inflation target. A second challenge at present is that the inflation statistics are difficult to interpret. For instance, there are no prices for many goods and services because there is quite simply no economic activity on these markets. Monetary policy must also be forward looking. Under normal circumstances this means that monetary policy is formulated according to forecasts of future economic developments.

This can be achieved if companies, agency managers and life agents take a collective long-term view and seek to build sustainable win-win relationships with their clients. Integrity pays off in a long-term relationship. Take care of clients’ interest, and the companies’ and agents’ interest will take care of itself. Management and supervisors play a critical role in ensuring that agents on the ground who interact with and advise consumers adhere to regulatory requirements, and to the fullest extent possible, industry guidelines on professional best practices. This is especially so for the more vulnerable segments of the population – the elderly and the illiterate, or the cashstrapped, who may fall easy prey to get-rich-quick schemes. I believe that with the collective partnership of all industry participants, individuals and regulators, we can preserve the credibility and reputation of Singapore as an insurance hub. Initiative The second value is initiative. As part of a national effort to raise the level of skills and competencies of Singapore’s financial sector workforce, the FICS was established to benchmark competency standards of financial professionals to international best practices. I congratulate GE Life for taking the initiative to become the first insurer to be successfully accredited for its assessment capabilities in underwriting, relationship management and claims handling under the FICS. GE Life’s agency force also forms the first batch of candidates who have successfully attained FICS certification in the insurance industry. Involvement The third value is involvement. The FICS awards reflect a whole-of-company involvement.