Central bankers can not prevent external shocks, such as a rise of commodity prices on the international markets, from resulting in a temporary rise of inflation. But, they have to preclude second-round effects. In its conduct of monetary policy, the ECB has already gained a high degree of credibility with market participants as is shown by moderate inflation expectations.
*  *  *  The Bank of Finland's financial result for 1996 marked a significant improvement over the last several years, which had resulted in an erosion of the Bank's capital position. The primary reason for the improvement was the sale to the state of the Sponda group, which had fallen to the Bank in the wake of the banking crisis.