Such influences can be changes in indirect taxes and subsidies or the price of oil. To the extent that such changes only have an initial direct effect on the price level but are not deemed to influence the future rate of inflation, they should not precipitate interest rate adjustments. A special case of the temporary effects is what happens when the Riksbank changes its policy and raises or lowers the instrumental rates. This affects the interest costs of housing, thereby influencing the CPI. Hence, interest rate changes can make it more difficult to reach the price stability objective in the short run. The CPI has varied significantly more than the various measures of underlying inflation that the Riksbank produces (Figure 5). One example is 1996, when interest rates were reduced rapidly. The CPI then fell much more than the underlying inflation, which was due to a reduction of the interest costs for housing. In this way, annual inflation ended up somewhat below the one per cent lower limit of the tolerance interval. At the same time, all indicators of underlying inflation show that it has edged downwards and has recently kept relatively stable in the interval of 1-1.5 per cent. The problem of temporary influences can be managed in different ways: 1. One possibility is to clearly specify in advance which deviations from the CPI are acceptable. This is the method used in New Zealand. It could lead to greater transparency.
We also believe that central banks and supervisors must play their part as, in the long run, climate stability is one of the main determinants of financial stability, which is their mandate. This is a shared conviction. At the One Planet Summit in Paris in December 2017, the Banque de France, with the support of other central banks and supervisors, launched the Network for Greening the Financial System (NGFS), which now comprises some 30 central banks, supervisors and international organisations, including four Asian members, and will certainly attract more in the coming years. *** Let me now conclude by quoting Nassim Nicholas Taleb, the famous author of The Black Swan. He once wrote that uncertainties can be like the wind which “extinguishes a candle and energises fire”, and added the following: “You want to use them, not hide from them. You want to be the fire and wish for the wind”. My wish is that the ongoing uncertainties will become the wind that deepens our bilateral and multilateral cooperation. On that hopeful note, I wish you a very Happy New Year and for the time being an inspiring and fruitful conference. 3/3  BIS central bankers' speeches