. similarly, our flexible approach to financial innovation encourage competition from new players, including fintech companies. leveraging on safe, innovative and affordable financial instruments and channels also drives business and industry growth and serves as the gateway to greater financial inclusion. professor klaus schwab, founder of the world economic forum quipped, “ there has never been a time of greater promise, or greater peril. ” this given, the bsp seeks to continually build a regulatory environment for innovations to flourish, yet still mindful that risks to stability and integrity – including from cyber attacks, money laundering, and terrorism financing – must be effectively managed. there are three principles that underpin our regulatory approach : first, regulation must be riskbased, proportionate and fair. second, there is need for active multi - stakeholder collaboration. third, consumer protection must be upheld and innovation must work for the benefit of consumers. our “ test and learn ” approach remains useful as we continue to deal with increasing digital innovations in the market. 4 / 5 bis central bankers'speeches the bsp is also on constant surveillance mode for other fintech activities by emerging market players. for example, we are monitoring industry developments on crowd - funding and peer - topeer lending, ready to take regulatory action when necessary. the bsp is working with the industry in implementing the national retail payment system ( nrps ). lastly, the bsp is currently closely coordinating with regulators from other jurisdictions for possible information sharing and a referral system focused on fintechs. under the proposed agreements, authorities will facilitate the entry of potential fintech players from their respective jurisdictions to minimize any duplication of efforts and further promote expansion of fintech innovations in the region. ladies and gentlemen, with both challenges and opportunities brought about by rapid innovation and technological disruption, economic players must adapt to changes, or else, one may find itself adrift and lost. rest assured that the bsp is committed to continue to pursue reforms to allow digital innovations to flourish as long as prudent standards are in place, and to ensure a level playing field for all stakeholders concerned – be it the businesses, consumers, or the general public. on behalf of the monetary board and the bsp, i wish map a productive and collaborative year ahead. thank you and good afternoon. 5 / 5 bis central bankers'speeches

unemployment is low. at the same time, there are signs that the labour market is less tight than earlier. employment growth has declined, and unemployment increased a little through last year. unemployment has evolved as we projected in december, while employment appears to be slightly higher than projected. chart : inflation broadly in line with projections price inflation has declined since last summer but remains markedly above the inflation target. energy prices increased through autumn so that overall consumer price inflation has moved back up somewhat. excluding energy prices and indirect tax changes, inflation moved down to 5. 5 percent in december broadly as projected, with a fall in both imported goods inflation and the rate of increase in domestic goods and services prices. chart : policy rate will likely remain at the current level for some time the committee assesses that the policy rate is now sufficiently high to return inflation to target within a reasonable time horizon. monetary policy is having a tightening effect, and the economy is cooling down. it will take time before we see the full effects of the past rate hikes. at the same time, business costs have risen considerably in recent years. continued high wage growth and the krone depreciation through last year will likely restrain disinflation. we therefore believe a continued tight monetary policy stance will be needed for some time ahead. further out, when inflation comes down and economic conditions so warrant, the committee can start lowering the policy rate. there is uncertainty about future developments in the norwegian economy. if input cost inflation remains elevated or the krone depreciates again, price inflation may remain high longer than projected. in that case, the committee is prepared to raise the policy rate again. if there is a more pronounced slowdown in the norwegian economy or inflation declines more rapidly, the policy rate may be lowered earlier than envisaged in december. 2 / 2 bis - central bankers'speeches