the beginning of the cyclical upturn. the year - onyear rise in the consumer price index ( cpi ) was 2. 6 per cent in september. energy products such as electricity and oil have put upward pressure on inflation over the past year. electricity prices, including grid rent and taxes, were 48 per cent higher in august than one year earlier, while petrol prices were 1 per cent higher. since the beginning of 2001, the rise in energy prices has been over 7 per cent on average. variations in energy prices may also lead to wide monthly variations in consumer price inflation. as a result of high electricity prices, the rise in cpi inflation will remain steady though 2006. energy prices are expected to fall in the spring of 2007, dampening the rise in cpi inflation. the rise in prices for non - energy goods has been moderate in recent years. price impulses from imported consumer goods have been particularly weak. their contribution to inflation has been negative virtually every year since the mid - 1990s, partly reflecting increased trade, a shift in imports towards low - cost countries and a substantial improvement in distribution efficiency in norway. price impulses from imported consumer goods are expected to continue to exert downward pressure on inflation for some time ahead, albeit to a lesser extent than in previous years. the rise in prices for domestically produced goods and services pushed up cpi inflation until this year, but since the beginning of the year this measure of inflation has edged down again. the 12 - month rise in prices for goods and services produced in norway, excluding energy, was 1. 3 per cent in september. the reduction in day - care rates in january this year has pushed down domestic inflation by an estimated 0. 3 per cent over the past year. the rise in prices has been lower than expected for both goods and services. it seems that strong competition between various producers within the food industry and the construction industry has curbed inflation. in addition, productivity growth in retail trade has been high in the past few years. intensified competition may also have restrained the rise in prices for banking and insurance services. continued strong competition, both foreign and domestic, and high productivity growth in recent years will probably contribute to curbing domestic inflation in 2007. several factors, however, point to higher inflation in the period ahead, but the rise in prices will probably pick up somewhat later than the historical relationship between inflation and capacity utilisation in the economy would suggest. capacity utilisation in the norwegian economy is picking up. this will contribute to

central bankers ’ speeches i trust swift would want to be associated with these developments ( advanced ones and those not so advanced ). it is important that africa receives, from swift, the much needed support so the continent is able to leap - frog into transactions that no longer depend on faceto - face exchanges of cash, particularly in view of the limited bank branch network. given my vantage point, i have observed that the reaction of governments and central banks to the rapid spread and increase in usage of electronic financial services, particularly through cellular phones, has been mixed. there are those who wish to push for across - the - board regulation, and others who favour a more selective, or “ light - touch ”, approach in order not to be seen to discourage innovation of new platforms and business models. the emerging view is that any regulation, oversight and supervision should focus on each specific service, rather than adopt a one - size - fits - all approach. in other words, a bouquet of oversight regulatory and supervisory instruments will need to be selectively and judiciously brought to bear on ict - based financial services. indeed, there are elements to which commercial law and consumer protection regulations should apply ; while those that are potentially of systemic importance to the financial sector will fall under the prudential ambit and appear on the supervisory radar. in view of the evolving nature of technology and its application, it is imperative that establishing the appropriate balance between vigilance, adaptation and learning through experience is the order of the day. needless to say, central banks play a key role in selecting the appropriate colours and scents for this bouquet ; what is critical is to learn to be adaptable and, if necessary, creative, without losing sight of the core responsibilities. honoured guests : i conclude by acknowledging our collective indebtedness to swift and technology solution companies for playing their part in researching and developing technology and its software, in the best interests of enhancing the development and expansion of the financial sector. in turn, this smooths trade relations by expediting cross - border payments, thus enhancing regional and continental economic integration. distinguished guests, ladies and gentlemen : this brings me to the end of my remarks. i wish you fruitful deliberations of what is left of your daunting programme. i also wish you a safe return home. i hope you will take with you pleasant memories of your brief stay in gaborone. better still i hope you are seriously considering the honourable minister ’ s invitation to familiar