In the second part of my speech, I will go on to talk about the SNB’s investment policy, which has become very important in the light of our interventions in the market. I will explain our objectives and the criteria we use for investing the foreign currency purchased in the context of these interventions. The investment policy must support our monetary policy and give us the necessary room for manoeuvre. The economic situation and SNB’s monetary policy Current economic situation  I shall begin by reviewing the current economic situation and the SNB’s monetary policy. Global economic developments have been largely positive. Real GDP of our trading partners grew by some 2% over the past year (cf. chart 1). The US has recovered from the financial crisis; full employment has been reached and the economy is expanding. Recovery also continues in the euro area. Unemployment is falling and GDP is growing in almost all member states. Nevertheless, recovery is not yet as advanced as in the US. Solid growth will still be needed in the future to make up for the setbacks suffered over the last decade. Inflation trends also vary among the various economies (cf. chart 2). The global rise in inflation over recent months is largely attributable to oil prices. However, core inflation – which excludes oil and food prices – has not increased across the board. While it has stabilised in the US, it remains low in other regions, particularly in Japan and the euro area.

Cyber security The consequences of cyberattacks can be considerable. What we are now witnessing is probably just the beginning. We must find a suitable way to mitigate risk, without making our systems needlessly expensive. Cyber-security challenges are among the most significant challenges to our payment system. Without an efficient defence system, trust in the system can be undermined over time. For its part, Norges Bank is devoting considerable resources to securing its systems, oversight of activities and implementing measures to protect against cyber attacks. As part of oversight and supervision, we will increase our monitoring of cyber-security risks in the payment system. This requires cooperation, both nationally and internationally, to identify and combat cyberattacks. Nationally, this takes place through, for example NorCERT, part of the Norwegian National Security Authority (NSM), and for the financial sector through the Norwegian Financial Sector Cyber Security Center (FinansCERT) under Bits. The Nordic financial sector has established 3/5  BIS central bankers' speeches  Nordic Financial CERT as an extension of the Norwegian FinansCERT. The need for cooperation does not stop at a Nordic level. The challenges are international, and are shared by private financial undertakings, their service providers and subcontractors and authorities in many countries. Measures to promote cyber security are technically complicated and require specialist expertise. But it is management and boards of directors in institutions and companies that have the final responsibility and decide strategy and resource use. This responsibility cannot be delegated or outsourced to others. Owners and managers must be aware of their ultimate responsibility.