The Norwegian Government issued a new regulation on monetary policy on 29 March 2001. The following press release was issued by Norges Bank:
Press release 29 March 2001:
The implications of the new mandate for monetary policy
The Government has today issued a new regulation on monetary policy, with the introduction of an inflation target of 2.5 per cent. Norges Bank issued its opinion on the new mandate and the consequences for the conduct of monetary policy in a submission of 27 March 2001 to the Ministry of Finance. In the submission, Norges Bank states that the communication of Norwegian monetary policy may be facilitated with the Government now quantifying an inflation target, in line with international practice. The submission is published on Norges Bank's website.
Central Bank Governor Svein Gjedrem affirms that the application of the new guidelines will not result in significant changes in the conduct of monetary policy. This applies both to the basis for the Executive Board's monetary policy decisions and day-to-day liquidity management.
Unchanged monetary policy stance
In the light of recent trends in the economy and the balance of risks, the...