Nonetheless, the central government deficit remained large by both historical and international standards. The indebtedness of households and firms again eased considerably and the external indebtedness of the total economy continued to improve. The Bank of Finland continued to relax monetary policy in 1996.
In the course of the year, the tender rate was lowered from 4.25 per cent to 3.0 per cent and the financial markets remained calm. The external value of the markka fluctuated to some extent but on the whole remained relatively stable.