ida wolden bache : policy rate kept on hold introductory statement by ms ida wolden bache, governor of norges bank ( central bank of norway ), at the press conference following norway's announcement of the policy rate, oslo, 20 june 2024. * * * presentation accompanying the speech chart : policy rate kept unchanged at 4. 5 percent the monetary policy and financial stability committee decided to keep the policy rate unchanged at 4. 5 percent. norges bank is tasked with keeping inflation low and stable. the operational target is inflation of close to 2 percent over time. we are also mandated to help keep employment as high as possible and to promote economic stability. we have raised the policy rate significantly in recent years in order to tackle high inflation. the economy has cooled and inflation has slowed. but we still have a way to go. inflation is higher than our target, and the rapid rise in business costs will likely contribute to keeping inflation elevated ahead. it is, therefore, our judgement that there is a need to keep the policy rate at today's level for some time and somewhat longer than we had envisaged earlier. let me say a little more about the background for the rate decision and the committee's assessments. chart : international inflation has slowed sharply international price inflation has slowed markedly since the peak in 2022, and inflation in the euro area and sweden is now below 3 percent. goods inflation is low, while services inflation remains elevated in a number of countries. in sweden and the euro area, central bank interest rates have been lowered recently, while there are expectations that central banks in the us and the uk will start cutting rates later this year. compared with march, when we last presented projections, the market expects fewer rate cuts this year. norwegian policy rate expectations have also risen slightly. the interest rate differential between norway and other countries influences the krone exchange rate. we do not have a policy target for the krone exchange rate, but we are concerned with the krone exchange rate because it affects the outlook for the norwegian economy. the krone has depreciated over the past couple of years. a weaker krone means an increase in imported goods prices. the past krone depreciation is still contributing to keeping inflation elevated. since march, the krone has strengthened a little. chart : low growth in the norwegian economy 1 / 3 bis - central bankers'speeches the norwegian economy gradually cooled through 2023, and growth has remained low so far

the monetary stability sector will also implement more streamlined cash management operations system this year, among others. at the same time, we are reorganizing our supervision and examination sector to adopt to a rapidly changing environment and implement reforms that will make our banking system stronger, more efficient, at par with international standards, and more responsive to the needs of our economy and our people. the resource management sector, on the other hand, will ensure that bspers are properly equipped with the appropriate skills and expertise required by our institution. 2008 also marks our shift to a more meaningful appraisal system in accordance with our merit system for salary adjustments and promotions. even the way we estimate and produce our currency requirements at the security plant complex is undergoing review to make it more efficient and responsive to the needs of the economy. indeed, change is happening around us. now, more than ever, we need to be open to change, to be flexible to be dynamic to achieve the goals we have set under our medium term development program. nevertheless, even as we welcome change, we should, at all times, remain faithful to the five core values of our institution, which are : patriotism, integrity, excellence, dynamism and solidarity. these core values should serve as our enduring and lasting guides as we deal with the opportunities and challenges ahead of us. ladies and gentlemen of the bangko sentral ng pilipinas. by tradition, this is the time of year when we commit to do better through what we call new year ’ s resolution. as our joint new year ’ s resolution therefore, let us commit to be guided by our core values, at all times, wherever we may be. muli sa ngalan po ng ating monetary board at nang aking pamilya kasama na ang aking maybahay na si elma at tatlong anak, ako po ay nagpapasalamat sa inyong lahat at humihiling na sana ay maging masaya, malusog, masagana, at matagumpay ang 2008 para sa ating lahat, at sa ating mga kababayan! mabuhay ang bangko sentral! mabuhay ang pilipinas!