##iberations. some people interpreted this to mean that we believed downside risks had strengthened. what we intended to communicate, however, was that, with the 2 % target in sight, we gave increased consideration to the risk that inflation could fall below the target. as you can see, differences in interpretation can be very subtle, which makes choosing the right words all the more important. i'd like to think that all the years of explaining complex concepts to my students has given me a lot of practice in this regard. even though i've been in this role for only a short time, i've been able to appreciate how the bank's approach to communication is constantly evolving. in the past, press conferences were held only when the rate announcement was accompanied by a monetary policy report. starting this year, all eight rate announcements now feature a press conference. this gives the bank the opportunity to share its assessment of the economic outlook with the public and explain the reasoning that led to the rate decision. following the decision, governing council members host information sessions and regularly give interviews with the media. since january 2023, a summary of deliberations is published online two weeks after every decision. this document is a record of governing council's assessment of the economic environment and the upside and downside risks to inflation. it also highlights where opinions converged and the topics that generated the most debate among members. the summary of deliberations for the september decision was published yesterday, in fact. lastly, the bank is always looking for new ways to communicate and for new channels to reach the widest audience possible. in fact, the bank has accounts on youtube, x, instagram, facebook and linkedin. be sure to follow us. 6 / 7 bis - central bankers'speeches conclusion it's time for me to wrap up. i've now participated in 12 rate decisions. since arriving at the bank, i've always felt my experiences and external point of view have been useful to my work and valued by the other members of governing council and the organization as a whole. i genuinely feel i'm contributing to the mission of a rigorous and conscientious institution that is mindful that its credibility is directly linked to the effectiveness of its actions. credibility must be earned. the bank's is founded on the trust that canadians place in us and our actions. even when those actions are difficult and have direct impacts, canadians understand that we are always guided by our resolve to

and wages. raising the rate also reduces the risk of a renewed rapid rise in property prices and debt. high price and wage inflation and a further buildup of financial imbalances would increase the risk of a sharp economic downturn further out. there are a number of factors to suggest that the key policy rate should be raised at a gradual and cautious pace. an environment of low global interest rates limits the room for manoeuvre. raising the key policy rate in norway too rapidly in the period ahead could act as a brake on the upturn in such a way that unemployment rises and inflation becomes too low. uncertainty about the effects of higher interest rates also suggests a cautious approach to interest rate setting. we have experienced a long period of low interest rates and rising household debt ratios. the effect of higher interest rates will therefore likely be more pronounced than the effect of earlier rate increases. i will return to this later. the risk outlook also reflects growing global protectionism and turbulence in some emerging economies. lower - than - expected global growth will have spillover effects on the norwegian economy. 1 / 7 bis central bankers'speeches the interest rate level the bank envisages for the years ahead is modest compared with historical interest rate levels. in the bank ’ s assessment, the level of the so - called neutral interest rate has fallen over time ( see brubakk et al ( 2018 ) and norges bank ( 2018 ) ). the key policy rate is therefore not expected to be as high as in earlier upturns. the objective of monetary policy is to maintain low and stable inflation and contribute to high and stable output and employment over time. as monetary policy is to be flexible and forward - looking, the key policy rate is lowered when the economy is entering a downturn. similarly, the key policy rate should be raised before the economy overheats. monetary policy affects inflation, output and employment through several channels. one important channel is the exchange rate channel. changes in the krone exchange rate affect economic activity in some business sectors and prices for imported goods and services. the krone exchange rate has acted as a shock absorber, as it did in 2014. a sharp depreciation of the krone dampened the negative effects of the fall in oil prices on the real economy. a low key policy rate contributed to underpinning a weak krone. at the same time, the responsible actions of the social partners restrained domestic cost inflation. the exchange rate and the interest rate differential