, ie overnight rates, as the new reference rates are required to be based on actual, observed transactions. the transition to new reference rates in other countries also has an impact on the use of reference rates in norway. the removal of foreign ibor rates would change the markets on which the norwegian banking sector currently relies. norges bank has, in consultation with finance norway, taken the initiative to establish a working group with a mandate to consider alternative reference rates for the norwegian market. the working group comprises norwegian banks and branches of foreign banks with a good understanding of the norwegian money market. finance norway and norges bank have observer status, while norges bank also provides secretariat support. reference rates play an important role, for the impact of monetary policy and in financial contracts. in only a few years ’ time, nibor may be replaced by other reference rates. this may affect the design of a range of financial contracts. preparing for new reference rates will require ample time and planning. when the working group presents its proposals in 2019, an important first step will also have been taken in norway. how will consumption be affected by a rise in interest rates? let me return to today ’ s situation. there are now prospects for a gradual rise in interest rates in the years ahead. a less expansionary monetary policy aims to prevent the economy from overheating further ahead. households account for a substantial portion of demand in the economy. households ’ response to higher rates will therefore have a considerable impact on the effectiveness of the interest rate increase. in the bank ’ s current assessment of the outlook for the norwegian economy, it is assumed that the gradual rise in interest rates will curb growth in household consumption somewhat. many households have likely become accustomed to a low interest rate level over the past few years. in the past ten years, the key policy rate has been reduced as many as 13 times. in the meantime, household debt ratios have increased. almost one quarter of total debt is now held by households that have never experienced an interest rate increase. with a higher level of debt, an interest rate change will have a more pronounced impact. at the same time, uncertainty about the effect of interest rate changes has increased, suggesting a cautious approach to interest rate setting. 4 / 7 bis central bankers'speeches the rise in interest rates affects consumption through various mechanisms. some of these mechanisms operate with a lag. household disposable income will be affected by slightly more subdued growth in employment and wages. higher interest rates may

competitive local private sector. we welcome this effort to collectively rethink our approach to evolving contexts, particularly through broader analyses of the drivers of social unrest and violent upheavals and a strengthened regional perspective. we commend management for the continued implementation of the g20 capital adequacy framework ( caf ) review, designed and launched under the italian g20 presidency. we note with satisfaction that the caf measures adopted so far are set to boost the ibrd's lending capacity by more than $ 100bn over a decade, a figure higher than what the 2018 general capital increase has provided over the corresponding 10year horizon. the increase of ibrd financing power will allow better response to global challenges and traditional development goals. the g20 caf review has also spurred ifc and miga to put forward equally transformative programs and products. much can still come from further implementation of the caf recommendations. we stand ready to evaluate and help devise additional measures and finetune existing instruments, at the board, with other relevant entities, and in international fora. private capital mobilization remains crucial to meet the needs and aspirations of developing and emerging countries. we welcome additional efforts to mobilize institutional investors and promote local private sector development. we therefore applaud the launch of the private sector investment lab and ifc's development of the 2 / 3 bis - central bankers'speeches warehouse - enabled securitization platform ( wesp ), renewed diagnostics, targeted government dialogue, and business - enabling policy reforms. we encourage progress on the global emerging markets risk database ( gems ) initiative, as part of a larger effort to improve information gathering and knowledge sharing within the larger investment community. the wb should work to maximize domestic resource mobilization, including through the new public finance review ( pfr ). envisaging a clear and effective division of labor, we invite the wb to collaborate closely with other partners, in particular the imf. the ability to put good ideas to good use is just as important as financing. we should therefore focus discussion on promoting innovation, building capacity in client countries, and developing bankable projects. within the wider agenda of the new wb playbook, we consider three workstreams of utmost importance. first, a strengthened one world bank approach. this should better integrate policy advice and public sector financing with private sector development and capital mobilization, thereby feeding into a revamped cascade approach. second, stronger partnerships, which should also lead to more effective country platforms.