was perceived as asymmetric, effectively setting a 2 % ceiling for inflation. this asymmetry very likely contributed to lowering inflation expectations and thereby inflation itself. the new symmetric inflation target is expected to influence long - term inflation expectations and to anchor them more solidly to the 2 % inflation target. when we published our new symmetric inflation target in july 2021, the operating environment for monetary policy was changing dramatically. slide 5. inflation is converging towards the ecb's 2 % target the supply shocks, caused first by the pandemic and then by russia's unjustified and brutal war in ukraine, pushed the euro area inflation rate above 2. 5 % for the first time in nine years by the fall of 2021, and then all the way up to 10. 6 % in october 2022. thanks to the normalisation of energy prices and the determined but very consistent monetary tightening, euro area hicp inflation is now at 2. 4 %. it is expected to decline further, reaching our inflation target next year. when i addressed this forum a year and a half ago, in october 2022, the uncertainty related to energy supply in europe was extreme. rationing of energy supplies was widely discussed. so were the various risk scenarios, some containing severe stagflationary tendencies. at the time, energy was the key driver of euro area inflation, while moderate wage inflation was acting as an anchor. subsequently, europe reacted decisively and cut the energy crisis short. today, wages have replaced energy as the main inflation driver – but wage growth is now moderating and inflation declining. due to the energy price assumptions, our inflation forecasts overestimated actual inflation in the fourth quarter last year. for this year, our assumptions and inflation forecasts have been more accurate, although in march we did revise down our inflation forecast for this year to 2. 3 %. in september last year, our 2024 inflation forecast was at 3. 2 %, so we have in fact been approaching our target faster than we had expected at the time we raised the policy rate to the current level. however, disinflation is more than just a story of the reversal in energy price movements. monetary policy has played an important role in dampening demand since the rate hiking cycle started in july 2022. monetary restraint is continuing to reduce inflation and impact the real economy strongly, affecting the growth outlook, particularly for this year. in march, we also revised down our growth

seppo honkapohja : 1st hundred years of the bank of finland speech by mr seppo honkapohja, member of the board of the bank of finland, at the finnish economic association xxxvii annual meeting, helsinki, 12 february 2015. * * * the bank of finland was established in 1811, by an imperial decree of emperor alexander i. we are the fourth oldest central bank operating today. only the swedish riksbank, the bank of england, and banque de france are older. the bank of finland is also more than 100 years older than finland ’ s political independence, which was achieved only in 1917. in this speech i will tell you about the first hundred years of the bank, including its old main building where we have this reception. the first task of the bank of finland was to separate the finnish financial system from sweden by issuing ( rouble - and kopeck – denominated ) notes, and by granting credits to finnish landowners and merchants. the bank of finland was originally established in the city of turku, in the south - west of finland, and moved to helsinki, the new capital of the country, in 1819. initially the bank operated out of a house owned by commercial counselor sederholm, and then moved to the senate house. a purpose - built building was completed on tallinmaki, nikolai street, in 1883. i will shortly tell you more about the main building. despite the efforts of the bank of finland, swedish money remained widely used in finland until 1840, when finland went on the silver standard ( following russia ), and the remaining swedish paper money was withdrawn from circulation. after this milestone, the notes issued by the bank of finland became the dominant means of payment in the country and the circulation was effectively controlled by the bank of finland. finland obtained its own currency unit, the markka in 1860 – i. e. well before the country became independent. this happened in the aftermath of the crimean war and the international financial crisis of 1857 – 58, when the rouble was seriously destabilized and went off the silver standard. in 1865, the head of the financial department of the finnish senate, j. v. snellman, obtained from tsar alexander ii the permission to link the markka to the silver standard independently of the rouble and finland ’ s monetary system was thus effectively separated from russia ’ s. most european countries moved to the gold standard in the 1870s