year and about 3½ % in 2023, as consumer spending on services rebounds and business investment and exports show solid growth. putting all this together, governing council concluded that, consistent with our forecast, a rising path for interest rates will be required to moderate spending growth and bring inflation back to target. of course, we discussed when to begin increasing our policy interest rate. our approach to monetary policy throughout the pandemic has been deliberate, and we were mindful that omicron will dampen spending in the first quarter. so we decided to keep our policy rate unchanged last week, remove our commitment to hold it at its floor, and signal that rates can be expected to increase going forward. the timing and pace of those increases will be guided by the bank ’ s commitment to achieving the 2 % inflation target. this ends our emergency policy setting and signals that interest rates will now be on a rising path. this is a significant shift in monetary policy, and we judged that it is appropriate to move forward in a series of steps. by being clear and deliberate, we are really trying to cut through the noise so that monetary policy is a source of confidence rather than another source of uncertainty. let me say a final word about another important monetary policy tool — our balance sheet. the bank will keep the holdings of government of canada bonds on our balance sheet roughly constant at least until we begin to raise the policy interest rate. at that time, we will consider exiting the reinvestment phase and reducing the size of our balance sheet by allowing maturing government of canada bonds to roll off. as we have done in the past, before implementing changes to our balance sheet management, we will provide more information on our plans. with that, senior deputy governor rogers and i will be happy to take your questions. 2 / 3 bis central bankers'speeches content type ( s ) : press, speeches and appearances, opening statements 3 / 3 bis central bankers'speeches

##evik ” and the leader of social democrats, and governor risto ryti, who were joined later on the day by kyosti kallio, president of the republic at the time. now you may wonder where the acronym “ bofit ” actually comes from. let me tell you. as i noted in my opening remarks today, its origins can be traced to the bank of finland ’ s bilateral trade department, which focused on trade with the then soviet union. in finnish, the department ’ s name was “ idankauppa ”, and research in this field was “ idantutkimus ”, so an ‘ i ’ and a ‘ t ’. the next thing was to combine this it with the bof for bank of finland : bofit! while we have held on to the handy bofit acronym all this time – and will certainly keep the brand – the actual full name of the institute has changed over the years. each time this has reflected relevant real - world changes in geopolitics and in the global economy. until last year, the full name was “ bank of finland institute for economies in transition ”. however, the word “ transition ” is not necessarily the most appropriate one any longer, for various reasons. so, we settled for the new name, bank of finland institute for emerging economies, which follows the currently valid taxonomy in international political economy and will certainly serve bofit well. 1 / 2 bis central bankers'speeches ladies and gentlemen, for those of you who were able to attend the conference today, i hope you found today ’ s discussions at the conference enlightening. in my view, one thing in particular is worth noting and let me reiterate that. that is, in spite of all the ongoing global tensions, the return of power politics, and the talk of a new cold war, global policy cooperation among the central banks is very much alive and functioning. indeed, this cooperation was crucial in sparing the world economy from a new recession or even a depression, when the covid - 19 pandemic forced the global economy into lockdowns and slow motion began 20 months ago. the rapid and forceful action by the federal reserve and the european central bank has supported the economy through troubled waters. for instance, the dollar swap lines agreed between the fed, the ecb and four other western central banks preserved dollar funding, which is the fuel of the financial system and thus of the world economy. and