Report on monetary policy in 2003 - the first eight months1)
1 Introduction
This report is structured in largely the same way as Norges Bank’s
Annual Report for 2002. First, some fundamental aspects of monetary policy
are discussed. Subsequently, there is a discussion of the background information
and the interest rate decisions in the first eight months of 2003. As in Norges
Bank’s Annual Report for 2002, monetary policy is assessed on the basis
of the following criteria:
- Consumer price inflation in 2003 and the background for deviations from
the target
- To what extent has the conduct of monetary policy in 2003 increased the
prospects for bringing inflation close to target two years ahead?
- Has the conduct of monetary policy contributed to stability in output
and employment?
- Has monetary policy in 2003 underpinned confidence that future inflation
will be 2½ per cent?
- Was monetary policy in 2003 predictable for financial market participants?
The final section of the report contains a summary and some concluding remarks
on monetary policy and its role in economic policy.