Taken together, the new information that we have received about the Swedish economy also indicates a development well in line with our forecast in the Inflation Report in October. Inflation and monetary policy Inflation in the Swedish economy has been low since the end of 2003. According to the most recent data, for September, annual inflation in terms of the CPI and UND1X stood at 0.6 per cent and 1.0 per cent, respectively.3 As we observed in the Inflation Report, the low inflation can be explained in large measure by favourable supply conditions – strong competition and fast productivity growth – and relatively low resource utilisation. At the same time, imported inflation has been restrained because the share of imports coming from low-cost countries has risen. Imported inflation has also been held back by the previous strengthening of the krona. Developments in the krona exchange rate are one of all the factors that we have to consider when we forecast inflation. It is also one of the few areas where the performance since October has deviated considerably from what we expected at the time. Allow me therefore to comment briefly on the krona exchange rate. For a succession of years the Riksbank has been predicting that the krona will  3  CPI data for October will be released today, 11 November. 5/6  strengthen. This forecast has been very accurate up to the beginning of this year even though there have been some large short-term deviations on the way (see Figure 2).
A final word on central counterparties (CCP): I would like to acknowledge the valuable proposals recently made by the European Commission to insist that those CCPs whose activities are “super-systemic” for the EU market establish themselves in the European Union. They are a step in the right direction and represent the only viable mechanism to guarantee that European authorities and national central banks in particular, can control and manage the risks that CCPs are likely to pose to the financial stability of the European Union. Once the provisions on the resolution of CCPs have been finalised, the compensation framework within the EU will have been improved considerably. 2/3  BIS central bankers' speeches  * * * Let me conclude with a general remark that concerns the economy: we need a system to assess, ex post, the economic effects of the reforms. France fully supports the work of the FSB to develop a structured analytical framework, which Germany has rightly included in its priorities for its G20 presidency. Europe, and Germany and France in particular, now has a special duty to protect financial regulation – a regulation that is sensitive to risk, balanced in its treatment of banks and nonbanks and binds the entire international community. Generally, that is what we’ve been doing well since 2009, and it is what continues to inspire us. Thank you for your attention and I wish you an excellent conference. 3/3  BIS central bankers' speeches