the systems. allow me to comment on these factors : 4. 3. 1. the importance of reliable information on risk and a clear division of responsibility it is important that the banks provide more information on the actual risk in the payment systems, so that the risk is known and understood ( see the second lamfalussy minimum standard ). our knowledge of settlement risk in the norwegian system is still insufficient. we know too little about exposure throughout the day, how it arises and the optimum approach to reducing it. we have to gain more insight into these factors, particularly since risk information will be an important element in granting licenses to interbank systems. moreover, this information is also essential for the correct pricing of risk in payment services. in this connection, i would also like to point out what it means to specify the respective responsibilities of the netting provider and the participants ( see the third lamfalussy standard ). i firmly believe that the law ’ s requirement that there shall be “ one operator who is responsible for the establishment and operation of the system ” may result in the necessary clarification of the division of responsibility in the payment system. for this reason, this requirement is not just a formality, but a real opportunity to create more transparency relative to the present system. 4. 3. 2. the importance of “ proper ” incentives it is important to have incentives which reflect the real costs connected to various payment services if participants are to come up with their own solutions balancing risk against efficiency. a pertinent example may be the regulations concerning loans in the central bank. it is a basic responsibility of the banks to ensure that liquidity is sufficient to cover settlement. the main rule for settlement in norges bank is that there shall be adequate cover in the account. if, for one reason or another, a bank does not have sufficient cover, it must turn to the market for financing. if necessary, the settlement should in part or in its entirety be delayed so as to give the institution enough time to obtain sufficient liquidity. too easy access to loans in the central bank in situations where financial stability is not at risk involves costs in that it weakens banks ’ incentives to address elements of risk in the payment systems and presents the customer with prices which do not reflect the risk attached to various payment services. 4. 3. 3. the importance of competition the stipulated regulatory framework affects competition, such as who is allowed to initiate new payment services. competition is important, both for improving the

a little longer for imported goods inflation to come down to a more normal level. the committee assesses that there is a need for a higher policy rate to bring inflation down towards the target. a higher policy rate will pull down demand for both labour and goods and services, which will have a dampening effect on price and wage inflation. a higher policy rate may also contribute to strengthening the krone exchange rate, which may curb imported goods inflation further out. chart 3 substantial labour shortages, but signs of cooling activity in the norwegian economy is high. employment has risen over the past year, and labour shortages have become pronounced. unemployment is at historically low levels. we are now seeing clear signs of a slowdown in the norwegian economy. high inflation and rising interest rates have led to a fall in household consumption. labour shortages appear to have eased somewhat. high electricity prices are also reducing profits for many firms. we projected a cooling of the economy in the course of autumn this year, but it now appears that the economy has passed a cyclical peak and that the slowdown may prove to be more pronounced. we have revised down our projections for economic activity ahead on the back of higher inflation in norway and a weaker outlook for our trading partners. as things stand, prices will rise at a notably faster pace than wages this year. many households will face a squeeze on their finances. some people will find it difficult to cope with higher borrowing costs on top of the broad rise in prices. but most households have the finances to cover increased expenses. next year we expect wages to rise at about the same pace as prices. our projections for wage growth are in line with the expectations of the social partners according to norges bank ’ s expectations survey. looking further out, price inflation is projected to drift down further to a level notably below wage inflation. chart 4 policy rate raised from a very low level the policy rate was cut to zero during the pandemic in order to cushion the downturn in the norwegian economy. when we saw that economic conditions were normalising, we embarked on a gradual normalisation of the policy rate. but when the labour market tightened and the inflation outlook indicated that inflation might run above target for some time, it was appropriate to raise the policy rate faster in order to bring down inflation. monetary policy is starting to have a tightening effect on the norwegian economy. we do not know with certainty what the peak policy rate will be, but we believe we are approaching that level. this may imply a