regulation, a review may be in order. i would, however, emphasise that our experience of the current monetary framework is positive. confidence in low and stable inflation is firmly anchored. the primary task of monetary policy must always be price stability. when inflation is firmly anchored, monetary policy can also contribute to stable developments in the real economy. monetary policy can react quickly to cyclical changes, as was the case during the financial crisis when the key policy rate was markedly reduced in order to limit the downturn. the framework has also functioned well in face of the substantial decline in oil prices. the flexibility and room for the exercise of judgement provided by the mandate has strengthened monetary policy and the norwegian economy. thank you for your attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

in activity in the oil industry is having spillover effects on the wider mainland economy. the effects are most pronounced in industries providing goods and services directly to oil companies, but are also clearly evident in a number of other industries. mainland business investment also showed a fall in 2015, driven by a weaker growth outlook and uncertainty surrounding economic developments. growth in household consumption has nonetheless remained fairly firm. house prices and housing investment have continued to rise, although the fall in oil prices has had a dampening effect in some areas of the country. public demand has also stimulated the economy. chart : relative labour costs the norwegian krone has depreciated markedly in the wake of the fall in oil prices and is now approximately 15 percent weaker than two years ago. the depreciation has led to a marked improvement in norwegian firms ’ cost competitiveness. the main responsibility for developments in relative wages lies with the social partners. if the improvement in competitiveness is to be sustained, norwegian labour costs must develop more in line with the labour costs of our trading partners. this will make it easier to build up a larger non - oil tradable sector. the krone depreciation has helped start the restructuring process in the norwegian economy. after a decade of higher growth in imports than mainland exports, export growth has recently outpaced import growth. the tourism industry is one of a number of industries experiencing an upswing. many export firms have announced plans to increase investments in 2016, which will provide opportunities for an increase in production and market shares. chart : unemployment employment in norway has been high for many years. compared with other countries, unemployment has been low. in the competition for labour resources, oil production and oil service companies have drawn the longest straw. the situation has now changed. unemployment has increased over the past year. regions with close links to the oil industry, bis central bankers ’ speeches which have benefitted from the oil boom for many years, are being hit hard. although employment continued to rise last year, employment growth has slowed. total mainland activity increased by 1 percent between 2014 and 2015. this is the lowest pace of economic growth since 2009. growth may edge down even further this year before gradually picking up again. growth is being restrained by the marked fall in petroleum investment and weak growth in other business investment, while it is being supported by household consumption, exports of traditional goods and public demand. the depreciation of the krone is also supporting inflation. the rise in prices for imported goods