Bearing in mind such a possibility from a longer-term perspective, the Board has decided to express “the goal for price stability in the medium to long term” with a degree of latitude as “a positive range of 2 percent or lower in terms of the year-on-year rate of change in the CPI” and to review the “goal” once a year in principle.
The decision was shaped in a meeting of Väinö Tanner, the great ”old menshevik” and the leader of Social Democrats, and Governor Risto Ryti, who were joined later on the day by Kyösti Kallio, President of the Republic at the time. Now you may wonder where the acronym “BOFIT” actually comes from. Let me tell you.