Ida Wolden Bache: Economic perspectives

Annual address by Ms Ida Wolden Bache, Governor of Norges Bank (Central Bank of Norway), to the Supervisory Council of Norges Bank and invited guests, Oslo, 16 February 2023.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Accompanying data of the speech. 

This is a day I have been looking forward to for some time. At long last, we can hold this event as it should be held – at our traditional Norges Bank venue filled to the brim. Three years have passed since last time – three years less ordinary.

We have endured a pandemic and the most restrictive measures seen in a time of peace. We have witnessed Russia's brutal war campaign against Ukraine. The war is a deep tragedy for the people of Ukraine and a dire threat to peace and stability in Europe.

Both the war and the pandemic have had far-reaching economic consequences. Over the past year, inflation has reared its head, with inflation rates reaching multi-decade highs.

The costs of high inflation have come into clear evidence. What started as a rise in a few prices ended up as a rise in a broad range of goods and services prices. Rapid and unexpected price increases are eroding peoples' finances and are impacting those with small margins hardest. The surge in inflation is also putting monetary policy and Norges Bank to the test. It is our responsibility to bring it down. That is something I have been mindful of during my first year as central bank governor.