for delivering necessary structural changes in the economy. but through the effects on the exchange rate, monetary policy can provide a push to restructuring in the business sector. the prerequisite for a pronounced weakening of the krone concurrent with low interest rates is continued confidence that inflation will remain low and stable over time. let me now turn to a more detailed account of the monetary policy pursued over the past year. monetary policy in 2014 was marked by steadily lower foreign interest rates and weaker domestic growth prospects. chart : petroleum investment the norwegian economy broadly followed the path projected at the start of 2014. but the picture changed just before summer. ahead of norges bank ’ s monetary policy meeting in june, information indicated that oil investment would fall markedly in 2015. high cost growth and focus on improving profitability prompted oil companies to scale back their investment plans. against this background, there were prospects that the norwegian economy would grow at a slower pace than expected earlier. at the june monetary policy meeting, norges bank kept the key policy rate unchanged, but lowered the projected path for the key policy rate. we gave weight to the possibility of a further weakening of the growth outlook for the norwegian economy, which might warrant a reduction in the key policy rate. through autumn oil prices declined markedly to around usd 70 per barrel at the beginning of december, or to a level at about 35 percent below the average for the first six months of 2014. at the same time, the krone depreciated considerably. a weaker krone leads to higher import prices. at the same time, the competitiveness of norwegian trade - exposed industries improves. the depreciation of the krone thereby dampens the effects of a lower oil price on the norwegian economy. the outlook for the norwegian economy had nevertheless clearly weakened. at the monetary policy meeting on 10 december 2014, norges bank gave bis central bankers ’ speeches particular weight to reducing the risk of a pronounced downturn in the norwegian economy as a result of the sharp fall in oil prices. the key policy rate was thus reduced by 0. 25 percentage point to 1. 25 percent. the analysis in the december 2014 monetary policy report implied a key policy rate at that level or somewhat lower in the coming years. chart : projections for the key policy rate in various monetary policy reports in the period to the monetary policy meeting in march 2015, the norwegian economy had moved broadly in line with the path projected in december 2014. inflation remained close to 2. 5 percent. unemployment had remained stable

and around 1990, when levels of domestic spending, private and public, far exceeded our economic limits. it was not until 30 years after oil had been discovered off our shores that norway was in a position to put some money aside. we are nonetheless frequently reminded that petroleum production has reached a plateau and will begin to decline in a few years ’ time. our welfare system, including old - age pensions, is basically financed by current income. it is not fundbased, as pensions are in a number of other countries. even though it is likely that the pension fund will grow considerably in the years ahead, estimates show that the capital in the fund will only cover some 60 per cent of public pension expenditure in the future. it cannot therefore be argued that the government ’ s savings are large relative to its obligations. the fund and its investments in international capital markets greatly enhance our welfare and they do it in two ways : first, they give us the freedom to consume and invest oil revenues independently of the actual time profile of oil production. second, they give us the freedom to diversify by converting oil in the ground into ownership stakes in businesses around the world, increasing expected returns and reducing risk. i hope those of us gathered here tonight – guests from far away and close by, and many who work with this fund every day – will see a growing consensus around standards and norms for ethical investment. as a representative of norges bank, i am happy that you wish to be part of the process. as i ’ m confident our owner the ministry of finance, and our colleagues at the council on ethics would agree, we welcome input, ideas, and challenges. i wish you every success with your discussions. thank you for your attention.