such a way the inflation objective may anchor the price expectations in the economy. the riksbank should be evaluated in light of this objective. if the riksbank systematically aimed below the objective or always overestimated the risks of inflation, it would be manifested over time by too low inflation on average. that the riksbank always aims at the objective of 2 per cent unfortunately does not mean that the price increases will always be limited to 2 per cent. first knowledge of the path leading from interest rate changes to their impact on inflation is insufficient to enable us always to expect to be able to achieve the objective. second price increases as measured by the consumer price index will continually be affected by various kinds of temporary factors. there may be, for example, changes in indirect taxes or external shocks in the form of changed oil prices. often such disruptions should not be counteracted ( as long as they do not risk affecting the long - term inflation process ). in addition, there is a continuous flow of new information that can change the inflation outlook. these factors can make the consumer price index diverge from the target ex post, so to speak. this insight is the reason for the riksbank ’ s decision to establish a tolerance interval around the inflation objective. ( diagram 5. cpi and underlying inflation ) in the inflation report of december, the assessment was that economic growth would be around 3 per cent in 1998 and somewhat more in 1999. the rise in demand was expected to result in a gradual reduction of the output gap in the coming years and in increasing inflationary pressure. given an unchanged repo rate, inflation was expected to rise gradually to 2. 5 per cent during 1999. in order to avoid more drastic changes in monetary policy at a later stage, we chose to adjust monetary policy in a somewhat less expansionary direction. the repo rate was raised in december from 4. 10 to 4. 35 per cent. ( diagram 6. inflation forecast december 1997 ) - 10 - cpi an d underlying in flation annual percen tage ch an ge 4. 0 4. 0 underly ing infl ation 3. 5 3. 5 3. 0 3. 0 2. 5 2. 5 2. 0 2. 0 1. 5 1. 5 1. 0 1. 0 cpi 0. 5 0. 5 0. 0 0. 0 - 0. 5 - 0. 5 jan - 95 jul - 95 jan - 96 jul - 96 jan - 97 jul

abdul rasheed ghaffour : keynote address - launch of tun ismail ali centre of excellence in monetary and financial economics keynote address by mr abdul rasheed ghaffour, governor of the central bank of malaysia ( bank negara malaysia ), at the preliminary launch of the tun ismail ali centre of excellence ( tia coe ) in monetary and financial economics, hosted by the asia school of business, kuala lumpur, 20 january 2025. * * * assalamualaikum warahmatullahi wabarakatuh and a very good afternoon to our distinguished guests, tan sri dato'sri dr. zeti akhtar aziz, former governor of bank negara malaysia, professor helene ray, professor of economics at the london business school and other honoured guests, welcome. it is with great pleasure and a deep sense of gratitude that i stand before you today at the launch of tun ismail ali centre of excellence in monetary and financial economics, here at the asia school of business ( asb ). previously known as tun ismail ali chair ( tiac ), the initiative has thrived under the auspice of universiti malaya over the last 20 years. since its establishment in 2000, the success of the tun ismail ali chair in fostering innovative research and academic contributions are a testament of tun ismail ali's legacy. for this, we are deeply grateful to universiti malaya for their unwavering support and invaluable partnership, which has laid a strong foundation for tun ismail ali chair. allow me to begin by expressing my deepest gratitude to tan sri dato'sri dr. zeti akhtar aziz. the initiative we are celebrating today is a reflection of her commitment to fostering excellence within our local academics communities, whose dedication has paved the way for this endeavour. the tun ismail ali chair owes its success to her strong aspiration to shape outstanding scholars in the field of monetary and financial economics. we also owe a great debt of gratitude for her instrumental role in the establishment of the asia school of business. tan sri zeti's efforts and commitment have been pivotal in establishing asb as a leading institution for higher learning and research in the asean region. we are truly honoured to continue her legacy here at asb. i am also honoured to welcome our distinguished keynote speaker, professor helene rey, who is the professor of economics at the london business school. we are privileged to have a prestigious scholar of her caliber with us today despite her demanding