Norges Bank


Minutes of the Executive Board meeting of 2 May 2018


Executive Board:

Øystein Olsen, Jon Nicolaisen, Egil Matsen, Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker and Steinar Juel


Arne Hyttnes and Kristine Landmark


Kristine Ryssdal

Employee representatives:

Mona H. Sørensen and Nina Larsson Midthjell (items 98-100)

Office of the Supervisory Council: Jan Frode Jakobsen (items 96 and 98)


Ida Wolden Bache (item 95), Per Espen Lilleås (item 95), Ingrid Solberg (item 95), Torbjørn Hægeland (items 95-96), Katrine G. Boye (item 95), Arne S. Osnes (item 95), Ketil J. Rakkestad (item 95), Knut Sandal (item 96), Anna Grinaker (item 96), Sigrid Igland (item 96), Runar Malkenes (items 95-96), Mads Kristensen (item 98), Ingunn Valvatne (items 95-100), Bjarne Gulbrandsen (items 95-100)

There were no comments on the meeting notice and agenda.

Item 95/2018 The current monetary policy outlook

Discussion documents:

  1. Recommendation on Norges Bank's key policy rate – Executive Board's meeting of 2 May 2018, STRICTLY CONFIDENTIAL memo from Monetary Policy (PPO) of 30 April 2018
  2. The Executive Board's assessment and information on developments since MPR 1/18, STRICTLY CONFIDENTIAL memo from Monetary Policy (PPO) of 30 April 2018
  3. Report from the meeting between Norges Bank and the Ministry of Finance of 9 March 2018, Report dated 23 April 2018
  4. Presentations by Monetary Policy (PPO) dated 2 May 2018

Ida Wolden Bache presented a review of economic developments since the previous Monetary Policy Report and the assessment of developments in relation to defined monetary policy strategy. The Governor presented the management's recommendation.

Against this background, the Executive Board discussed the matter. The Executive Board's assessment is that the upturn in the Norwegian economy appears to be continuing broadly in line with the picture presented in the March Report. Underlying inflation is below the inflation target, but the driving forces indicate that it will rise. Overall, the outlook and the balance of risks do not appear to have changed substantially since the March Report.

The Executive Board decided to keep the key policy rate unchanged at 0.5%. The decision was unanimous.

Item 96/2018 Draft report – Financial Infrastructure 2018

Discussion document:

  • Memo from Financial Stability of 27 April 2018

Torbjørn Hægeland and Sigrid Igland gave a briefing on the main elements of the report.

The Executive Board discussed the matter and approved the draft Executive Board's Assessment. The Central Bank Governor was authorised to finalise the report on the basis of the Executive Board's discussions.

The report is to be published on 24 May.

Item 97/2018 Briefing on current issues in Norges Bank Central Banking Operations

The Governor gave a briefing on relevant matters for Norges Bank Central Banking Operations.

Item 98/2018 Conducted external evaluation of Internal Audit

Discussion documents:

  • Memo from Internal Audit of 24 April 2018
  • Memo from the Audit Committee of 24 April 2018

Internal Audit in Norges Bank is to perform its tasks in accordance with the International Internal Audit (IIA) Standards. According to the IIA Standards, an external evaluation of the function must be carried out at least every five years. Internal Audit has engaged the audit firm EY to conduct the evaluation.

Mads Kristensen presented the key points in the report from EY.

Karen Helene Ulltveit-Moe reported on the Audit Committee's discussions. The Committee took note of the conclusion that Internal Audit is to perform its tasks in accordance with IIA Standards and that Internal Audit has a clear, formalised mandate and structure that safeguards its independence. The Committee also took note of the recommendations from EY. The Audit Committee recommended that the recommendations from EY should be incorporated into the instructions for Internal Audit.

The Executive Board discussed the matter and took note of the external evaluation. The Executive Board asked for the recommendations from EY to be incorporated into Internal Audit's instructions and work processes. The Executive Board asked for coordination of the work between Internal Audit and the Supervisory Council to be facilitated as far as possible in order to increase efficiency in Norges Bank's supervisory and audit work.

Item 99/2018 Executive Board's duties and working processes

Discussion document:

  • Memo from the General Secretariat of 27 April 2018

The Executive Board discussed its duties and working processes on the basis of the discussion document.

The Executive Board approved the proposed meeting and seminar schedule for 2019.

The Executive Board discussed the proposed clarifications in the Executive Board's Rules of Procedure and asked for a revised version of the Rules of Procedure to be presented at one of the June meetings.

Item 100/2018 Any other business

There was no other business.

The following were distributed for information together with the discussion documents:

  • Energy shares in the Government Pension Fund Global, Letter of 26 April 2018 to the Ministry of Finance
  • NBREM - Report from the Real Estate Investment Board meeting of 25 January 2018
  • NBIM Report – GPFG Performance and Risk March 2018
Published 8 November 2018 13:30