the first quarter of 2022 onwards. net asset purchases under the pandemic emergency purchase programme ( pepp ) were discontinued at the end of march 2022. as of july, net asset purchases under the asset purchase programme ( app ) were also discontinued. pepp reinvestments will last until at least the end of 2024. app reinvestments are being implemented in full for as long as needed, in order to maintain an appropriate monetary policy stance. moreover, collateral easing measures were phased out and adjustments were made to the terms of targeted refinancing operations ( tltro - iii ) adopted during the pandemic. the second major step of the normalisation phase was the increase of the key ecb interest rates. in a historic move in july, the ecb raised rates by 50 basis points, bringing the eight - year - long period of negative interest rates to an end. since then, interest rates have been raised twice, by a cumulative 150 basis points, in order to bring inflation down to levels consistent with the price stability mandate of 2 % inflation over the medium term in a timely manner, to ensure that inflation expectations remain anchored and to prevent any second - round effects. against the backdrop of extreme prevailing uncertainty, the governing council dropped last summer the forward guidance on interest rates, making a transition to a meeting - bymeeting approach for interest rate decisions. in this regard, the future policy rate path will be data - dependent based on the evolving outlook for inflation and the economy. let me now turn to some very important decisions by the governing council that draw upon the lessons learned during the series of crises : risks of fragmentation could undermine the smooth transmission of the normalisation of our monetary policy across 3 / 6 bis - central bankers'speeches all countries in the euro area and should therefore be addressed. by fragmentation, we mean episodes of deterioration in financing conditions in some euro area countries that are not warranted by country - specific fundamentals. in such cases, the interest rates in the affected countries are higher than in the other euro area countries, making the transmission of monetary policy uneven. with the above in mind and in order to safeguard the orderly transmission of the intended monetary policy stance, the governing council announced last december that pepp reinvestments could be adjusted flexibly across time, asset classes and jurisdictions at any time. this decision has significant repercussions also for our country, since this could include purchasing bonds issued by the hellenic republic

are unstable. there are still several fundamental forces that influence the krone. one is purchasing power parity, another the phasing in of petroleum revenues and a third is cyclical developments in norway and other countries. moreover, the krone can be influenced by a shift in wage formation, and the krone can also be affected by external factors. a fundamental driving force is purchasing power parity. prices in norway relative to prices in other countries, measured in a common currency, have remained fairly stable over time. purchasing power parity can be illustrated by movements in the relationship between the norwegian krone and the german mark in the last 30 years of the mark's life as a currency. in 1970, a german mark cost about 2 kroner. in 1986 / 87, it cost about 4 kroner. the exchange rate remained relatively stable in the following years. on the other hand, prices rose twice as quickly in as in germany from 1970 to 1986. however, prices and the exchange rate were stable in relation to germany from the end of the 1980s until the german mark ceased to be a currency. a measure of the real exchange rate is the trade - weighted exchange rate index ( twi ) in relation to price developments in norway relative to trading partners. the real krone exchange rate has fluctuated around a long - term average level over the past 30 years. when the krone deviates from the average long - term level, it tends to return to it relatively quickly. inflation differentials between norway and other countries have gradually been offset by changes in the krone exchange rate. this relationship has been robust even in the face of significant changes in economic policy. however, the economic policy reform in spring 2001, with the introduction of a new fiscal rule and inflation target, may still have an impact on how quickly prices stabilise in the years ahead. increased spending of petroleum revenues or expectations of increased use of petroleum revenues can lead to an appreciation of the krone. increased use of petroleum revenues over the central government budget implies higher demand. if inflation is low and stable, an appreciation of the krone will lead to a scaling back of business and industry to increase the room for more activity in the sheltered sector. such exchange rate movements will typically come in waves. as petroleum revenues are being phased in, real interest rates will tend to rise. there will be a tendency for the krone to show a real appreciation, accompanied by a deterioration in competitiveness. the real