speech date : 13 / 11 / 2019 speaker : deputy governor martin floden venue : orebro university and kommuninvest, orebro sveriges riksbank se - 103 37 stockholm ( brunkebergstorg 11 ) tel + 46 8 787 00 00 fax + 46 8 21 05 31 registratorn @ riksbank. se www. riksbank. se monetary policy in a changing world * over the past year it has become increasingly clear that economic growth is slowing down, both in sweden and abroad. it is not surprising that growth is slightly lower than during the strong years 2014 - 2018. but there have recently been increasing signs that the slowdown will be larger and occur faster than we at the riksbank have been expecting. to determine how monetary policy should react to this, we need to understand why growth is falling. is it due to weaker cyclical economic activity, or to deeper, structural changes in the economy? today i intend to first briefly discuss some structural changes that may have had significance for economic developments in recent years. these are changes that may have entailed lower underlying interest rates and growth and lower inflationary pressures, and which may affect the conditions for the riksbank's work going forward. after that, i will say a few words about the possibilities open to monetary policy if economic developments become weaker than we have forecast. in conclusion, i would like to say a few words about climate change, one of the structural changes that affects the way the economy functions. how is the riksbank ’ s work affected by climate change and how can the riksbank contribute to greener financial markets? the economy changes the international economic playing field has changed in many ways in recent years. let me give some examples : • the geopolitical situation has deteriorated and nationalistic tendencies have become more common. this has led to increased protectionism and new many employees have contributed valuable comments on the first draft of this speech. i would like to thank in particular iida hakkinen skans, bjorn lagerwall, asa olli segendorf, rebecka hallerby and marianne sterner. * 1 • • • • trade barriers. after many decades of increased international trade and international capital flows, globalisation has now taken a step back. 1 china has emerged as an increasingly important actor on the world market. this has led, for instance, to increased saving in the world economy and contributed

njuguna ndung ’ u : the role of banking and finance in regional integration address by prof njuguna ndung ’ u, governor of the central bank of kenya, at the banking and finance conference, nairobi, 18 august 2008. * * * chief executives of commercial banks here present ; john wanyela, executive director, kenya bankers association ; representatives of the east african business council and east african development bank ; conference facilitators ; distinguished guests ; ladies and gentlemen : i am delighted to be here this morning and let me hasten to thank the organisers of the conference for the invite. i am informed that the overarching theme of the conference is mainstreaming banking and finance issues in the integration process of the east african community. this is indeed a subject that is near and dear, not just to the central bank of kenya, but also to our counterparts in the region. i was therefore pleased to be advised that similar forums have already been held in uganda, rwanda and tanzania. i am further informed that a regional forum that will bring together all the east african key banking and finance players is scheduled for arusha in the course of next month. the role of banking and finance in regional integration cannot be overemphasised. at the most basic level, banks facilitate trade and flow of funds and investments across the region. however, with the global trends towards regional integration, banks will increasingly play a pivotal role in providing capital that will make this vision come true. i have in mind the move towards private - public partnerships in the financing and implementation of key regional infrastructure projects. we would like to see our banks playing an increased role in such initiatives. commercial banks must therefore facilitate long term financing projects. it would be apt at this juncture to commend the kenyan banking sector that is well represented here today for expanding its footprint across the east african region. regional banking is a relatively “ virgin ” service that should be encouraged. your institutions will, however, require to be well capitalised to take advantage of emerging regional opportunities. in this regard, raising capitalization in the commercial banks will facilitate flexibility and innovations in their market niche. i would also like to commend kenyan banks and the kenya bankers association for their efforts in the recent safaricom ipo. all the banks came out of it unscathed and this self discipline and focus is commendable. of course, the central bank had to walk the path with them. allow me to