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Interest Rate Chart
Bank sets the interest rate chart
with a view to maintaining low and stable inflation. The inflation target is set at 2½ per cent. A substantial share of the effects on inflation of an interest rate
chart change will occur within two years. Two years is therefore a reasonable time horizon for achieving the inflation target of 2½ per cent. If it appears that inflation will be lower than 2½ per cent with unchanged interest rates, the interest rate will be reduced. It is equally important to avoid an inflation rate that is too low as it is to avoid an inflation rate that is too high. The most important monetary policy instrument today is the interest rate on
banks deposits.
A number of interest rate
chart's are presented at the Executive Board's monetary policy meetings. The
interest rate chart and their presentation are an important part of the basis for the Executive Board’s interest rate decisions.
Bank wishes to provide greater transparency in connection with the interest rate decisions by publishing these charts on the Bank's website. Most of the charts are based on data that have already been released. Some of the charts, however, contain data or assessments that have not been published. This applies to forecasts from the OECD and the IMF before they are published, wage growth estimates for various groups based on confidential information from employers or employee organisations, data from specific enterprises or new, preliminary analyses from
Bank.
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