may have been somewhat higher earlier this year than we had assumed. when demand for goods and services is high, as it is now, firms can in turn pass on higher costs for labour, energy and intermediate goods to domestic consumer prices. some firms may take advantage of the good times by raising prices a little more than necessary in order to increase margins. chart : low and stable inflation is a public good the political authorities have mandated norges bank to keep inflation low and stable. we are also mandated to help keep employment as high as possible and to promote economic stability over time. low and stable inflation is important for the economy to function well and is a prerequisite for predictability. i don ’ t think any of us want to return to the great inflation of the 1970s. inflation also tends to become more variable at high levels, making it more difficult for both businesses and households to plan ahead and make financial decisions. by keeping inflation low and stable, we contribute to maintaining economic activity and employment at a high level. 2 / 3 bis central bankers'speeches high and variable inflation rates also have distributional implications. as an unexpected rise in prices will not automatically be followed by an increase in wages and benefits, the result will be a reduction in purchasing power, particularly for those with low incomes and small margins. norges bank cannot influence international commodity prices or water reservoir levels. inflation caused by these factors is beyond our control. but we can take steps to prevent inflation from becoming entrenched. higher interest rates have the effect of reducing demand for both labour and goods and services, thereby pushing down wage and price inflation. in addition, higher interest rates can contribute to strengthening the krone, which can in turn curb the rise in prices for imported goods. chart : household debt has increased as the policy rate is raised, residential mortgage rates will rise. norwegian households are highly leveraged. over the past 30 years, household debt as a percentage of disposable income has doubled. with higher debt, increased interest rates will have a stronger impact on household budgets and, combined with the high level of inflation, will curb growth in household consumption ahead. in just under a year, we have raised the policy rate five times. this means higher interest expenses for two out of three households. both in terms of hard cash and as a percentage of disposable income, interest expenses will increase most for households with the highest incomes, which is also the group with the highest debt to income ratios. as

sabine mauderer : introductory statement - meeting of the southern african development community ( sadc ) committee of central bank governors introductory statement by dr sabine mauderer, member of the executive board of the deutsche bundesbank, at the 57th meeting of the southern african development community ( sadc ) committee of central bank governors ( ccbg ), swakopmund, 8 september 2023. * * * check against delivery 1 introduction ladies and gentlemen, it is a great honour and pleasure for me to be here with you today. my deep gratitude goes to the chair of the ccbg, governor kganyago, and also to the host of today's event, governor! gawaxab, for inviting me to this important meeting. this week the important africa climate summit took place in nairobi. 1 the prime minister of kenya said : we need to unlock solutions. today, i am here in namibia – that is no coincidence. why? because : climate change also affects our responsibilities as central bankers. be it inflation, be it economic growth or productivity. climate change will also affect financial stability. finally, talking about financing adaptation or transformation, the role of the financial system needs to be defined. before going into details, let me make clear two things : climate change is a risk and a disaster, but tackling climate change also offers business opportunities. for example, africa has a great potential in renewable energy. and europe is looking for business partners. to be clear, central bankers are no politicians and our role is not to set up climate policies. yet, we have to play our role within our mandate. we have the analytical capacity, the economic expertise. we know the needs and the threads of the financial system. as well as the challenges and opportunities of the real economy. so it is our duty to assist in the process of unlocking solutions. it does not matter, whether we are part of the global south or global north. we are all in the same boat. we share our planet and we need to collaborate at an eye - to - eye level, as equals. 1 / 4 bis - central bankers'speeches therefore, i highly appreciate the increasing voice of the african continent. be it in kenya, be it in paris or at the next cop. that is the reason, why i am here today. i am the incoming chair of the global central bank forum : network for greening the financial system. within the last 6 years, 130 central banks and