We look at [HICP] stripped, super stripped, PCCI. There's a whole variety of the prices and the inflation that we look at, and we need to see that. We need to be confident that it is heading down. For the moment, we have some of those measurements declining a bit, some of those sort of stable and others still going strongly. The third component is the strength of transmission, which we measure at each and every step of the way from the market rates, bond prices, credit by banks, bank funding. And then to the economy, where we refer to the 4.4% and 3.4% [April bank lending rates to] corporate and households, because that's how it is transmitted. And ultimately to inflation. So, that's the path that we want to see delivering so that we head towards our target. That's what we have done, that's what we will do and we will stick to that methodology. I was wondering: how alarmed are you about the upward revision to the 2025 inflation outlook? Does it mean that the 3.75% terminal rate that was generally expected – at least until recently – isn't going to be enough? Then secondly: you've alluded to the strength of the labour market and the impact that wages are having on inflation. Do you think you can achieve the 2% inflation target with unemployment remaining as low as it is now? Or does it have to go up? So, your first question referred to the core inflation revision. We revised actually all three.
Dimitar Radev: Achieving the financial stability objective through macroprudential measures cannot be sustainable without understanding the financial cycle Opening remarks by Mr Dimitar Radev, Governor of the Bulgarian National Bank, at the Conference "The Current Global and European Financial Cycle: Where Do We Stand and How Do We Move Forward? ", jointly organized by the Bulgarian National Bank and the Bank for International Settlements on the occasion of the 140th Anniversary of the Bulgarian National Bank, Sofia, 7-8 July 2019. * * * Dear colleagues, Distinguished guests, We are delighted to have you with us to participate and share in our joint BNB-BIS conference organized on the occasion of the 140th anniversary of the Bulgarian National Bank. I would like to extend my special thanks to the General Manager Agustín Carstens and the BIS for their support in organizing this event. This is only a latest example in decades of cooperation between our two institutions. The BNB is among the oldest central banks in the world, 13th by order of establishment1. Today’s conference, therefore, marks a long history of central banking in Bulgaria. Evolution of a central bank’s mandates A central bank is historically associated with the goal of keeping the national currency and prices stable. After the Great Depression of the 1930 s supervision has become a function entrusted to or taken away from central banks in cycles depending on crisis experiences. With respect to supervision as a central bank function, the 2007/2008 global crisis had two effects.