Finland is part of the euro area. The Eurosystem is responsible for the implementation of the single monetary in the euro area. The Eurosystem is composed of the national central banks (NCBs) in the euro area and the European Central Bank (ECB) in Frankfurt. As a member of the Eurosystem, the Bank of Finland participates in the preparation of the single monetary policy and the related decision-making and implementation in the euro area. The main objective of Eurosystem monetary policy is to maintain price stability in the euro area, thereby safeguarding the purchasing power of households. Price stability is defined as a year-to-year increase in consumer prices of below 2%, and price stability is to be maintained over the medium term. The main monetary instruments are the key interest rates. The level of key interest rates affect market prices and macroeconomic developments. The key interest rates of the Eurosystem are set by the Governing Council of the ECB which includes the Governor of the Bank of Finland as a member. Monetary decisions are based on the Council’s judgement at any one time of the risks to price stability in the euro area. The Bank of Finland publishes its assessment of the economic situation around the world and in Finland in the Bank of Finland Bulletin. Economic forecasts are published twice a year.
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ECB Governing Council press conferences