Our forecasts of inflation and other components, like the interest rate decisions, are based on a forecast of the future repo rate path. These forecasts change as new information is received, but we report our current views of the future every time we publish a monetary policy decision. The Riksbank is governed by an Executive Board The year 1999 is a natural starting point when describing the process for monetary policy decision-making. This was when the price stability target was prescribed by law and the Riksbank was given a more independent position with regard to our principal, Sveriges Riksdag (the Swedish parliament). This entailed a major change with regard to our decisionmaking and the way we work in relation to the General Council of the Riksbank. As you already know, the work at the Riksbank has been headed since 1999 by an Executive Board consisting of six members, one of whom is Governor of the Riksbank and Chairman of the Executive Board. The members are appointed for a period of six years at a time. Normally the periods of office for the different members overlap to create continuity in the work of the Bank. Previously it was the Governing Council of the Riksbank, whose members are appointed by the Riksdag, who governed the Bank together with the Governor. Today the General Council has more of a controller function. They appoint the members of the Executive Board, but do not have any influence over, for instance, the decisions on the repo rate.
But before the minutes are published it is the majority line that applies when we Executive Board members make speeches outside of the Riksbank. After that we members are each free to describe our personal differences of opinion regarding the interest rate decision. Constant assessment means that we are always prepared for change Let me round off. Today I have talked about the major changes in recent years in the way we produce material used as a base for our interest rate decisions. Some of these have come about because the methods of making forecasts in general have developed, something that also affects other central banks. Other changes have been shaped by the specific conditions that apply in Sweden. The Riksbank’s independent position makes demands on us to be open and clear, what economists usually term transparency. The Riksbank’s decision to begin publishing its own forecasts for the repo rate is a step in the work on increasing transparency and further improving our analysis. 10 The new assumption for the repo rate has led to the Executive Board becoming more involved in the forecasting process. We are constantly evaluating our forecasts to see how successful they are at capturing developments. This also means we are constantly striving to improve our ways of working. If we make any major changes that have significance for our forecasts we will of course let you know.