Meanwhile, business fixed investment continues to decrease and private consumption is also weakening. Moreover, housing investment remains sluggish and public investment is on a downward trend. Amid this weak final demand, inventory adjustment is progressing in many industries including electronic parts as a result of the large production cutbacks to date. Reflecting this development, the rate of decline in industrial production is contracting.
With regard to financial stability, the Bank of Finland’s task is to ensure the credibility and efficiency of the financial system and to participate in its development. The central bank is the bankers’ bank. The services that the central bank provides are a platform for interaction between banks. The central bank and the financial supervisory authority also participate in setting common ground rules.