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    <title>Bank of Finland Bulletin</title>
    <link>https://bankoffinlandbulletin.fi</link>
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    <language>en</language>
    <description>Bank of Finland Bulletin - Articles on the economy from the Bank of Finland</description>
    
      <item>
        <pubDate>Thu, 22 Oct 2026 14:40:02 +0300</pubDate>
        <title>The effects of energy shocks on inflation vary surprisingly widely over time</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/the-effects-of-energy-shocks-on-inflation-vary-surprisingly-widely-over-time/</link>
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          <category>International economy</category>
        
          <category>Monetary policy</category>
        
        <description><![CDATA[In the euro area, changes in energy prices of the same magnitude have had very different effects on core inflation at different points in time. These differences emerge with a time lag as increases in energy prices spread more widely through the economy. When the central bank’s inflation target is regarded as credible, inflation expectations are more stable. Inflation expectations in the euro area are currently more stable than at the onset of the 2022 energy crisis, and the effects of energy shocks on core inflation may therefore also be more moderate.]]></description>
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      <item>
        <pubDate>Thu, 22 Oct 2026 14:40:01 +0300</pubDate>
        <title>Services have driven the euro area economy, but productivity growth rests on a few industries</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/services-have-driven-the-euro-area-economy-but-productivity-growth-rests-on-a-few-industries/</link>
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          <category>International economy</category>
        
        <description><![CDATA[Since the pandemic, economic growth in the euro area has been propelled almost entirely by the service sector. The growth in the service industries is attributable to the recovery from the pandemic and the steady increase in the service sector’s role in the economy. There are considerable differences between the various service industries, however. The information and communications industries have grown strongly, while growth in the more traditional service industries is slow. The use of artificial intelligence and robotics would provide the euro area’s service industries with an opportunity to improve productivity, but European companies are still lagging behind US companies in this area.]]></description>
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      <item>
        <pubDate>Thu, 22 Oct 2026 14:40:00 +0300</pubDate>
        <title>Recent supply disruptions in the energy market have affected euro area inflation expectations</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/recent-supply-disruptions-in-the-energy-market-have-affected-euro-area-inflation-expectations/</link>
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          <category>International economy</category>
        
          <category>Monetary policy</category>
        
        <description><![CDATA[The fluctuations in energy prices have had a significant impact on euro area inflation in the post-pandemic era. In this analysis, we examine how energy market supply shocks have affected market-based medium-term inflation expectations in the euro area in recent years. According to our findings, inflation expectations have reacted in particular to disruptions in the supply of crude oil and refined petroleum products caused by the war in Iran, but the impact has remained fairly limited given the scale of the supply disruptions.]]></description>
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      <item>
        <pubDate>Wed, 21 Oct 2026 11:00:00 +0300</pubDate>
        <title>Why central banks cannot always “look through” supply shocks</title>
        <link>https://bankoffinlandbulletin.fi/blogs/2026/why-central-banks-cannot-always-look-through-supply-shocks/</link>
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          <category>Monetary policy</category>
        
        <description><![CDATA[When inflation rises into the 5-6% range, firms may reprice more frequently just as households begin revising expectations more aggressively. These channels can reinforce one another, making early and credible policy action more valuable.]]></description>
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      <item>
        <pubDate>Thu, 15 Oct 2026 13:00:00 +0300</pubDate>
        <title>Developments in digital finance will reshape monetary policy implementation and central bank services</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/developments-in-digital-finance-will-reshape-monetary-policy-implementation-and-central-bank-services/</link>
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          <category>Monetary policy</category>
        
          <category>Money and payments</category>
        
          <category>Interest rates</category>
        
        <description><![CDATA[Financial market infrastructure will be reshaped in the near future by financial market innovations, such as the increasing tokenisation of assets, and by the growing popularity of instant payment. At the same time, Eurosystem projects such as the digital euro and the distributed ledger technology (DLT) solution Pontes will improve the usability of central bank money in a digital world. For the steering of market interest rates to remain effective, central bank money must continue to be an anchor for the increasingly digitalised financial markets. In practice, this means having modern TARGET services that adapt to changing times, flexible monetary policy instruments, and a collateral framework that takes account of innovations.]]></description>
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      <item>
        <pubDate>Wed, 14 Oct 2026 10:59:57 +0300</pubDate>
        <title>Structural operations will meet part of the banking system’s liquidity needs in the future</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/structural-operations-will-meet-part-of-the-banking-systems-liquidity-needs-in-the-future/</link>
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          <category>Monetary policy</category>
        
        <description><![CDATA[The amount of liquidity in the banking system is represented by the deposits that commercial banks hold at the central bank, or central bank reserves. This liquidity has declined considerably in the euro area in recent years. There is nevertheless still an abundance of liquidity in the euro area banking system, whereas the demand for Eurosystem standard refinancing operations has remained low. As the assets acquired under the European Central Bank’s (ECB) purchase programmes mature, central bank reserves will decline to a level that corresponds to the aggregate demand for liquidity in the banking system. Banks’ demand for Eurosystem standard refinancing operations will then start to grow. Once demand has grown sufficiently, the supply of liquidity will be supplemented by structural refinancing operations, and asset purchases in a structural bond portfolio will begin. This article looks at the future role of structural operations and examines the potential features of these. The ECB’s decisions on the specific features will be based on a review of the Eurosystem’s operational framework for implementing monetary policy.]]></description>
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      <item>
        <pubDate>Wed, 14 Oct 2026 10:59:56 +0300</pubDate>
        <title>Interest rate steering as liquidity declines</title>
        <link>https://bankoffinlandbulletin.fi/article/analysis/2026/interest-rate-steering-as-liquidity-declines/</link>
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          <category>Monetary policy</category>
        
          <category>Interest rates</category>
        
        <description><![CDATA[The implementation of Eurosystem monetary policy is undergoing a transition as the volume of central bank reserves – or liquidity – declines. The Eurosystem’s future implementation of monetary policy will rest on there being a demand for liquidity by banks, access to standard refinancing operations, and a smoothly functioning money market. The Eurosystem will ensure that the transition is carried out in a controlled manner. This article examines how the determination of short-term money market rates may change in the new environment.]]></description>
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      <item>
        <pubDate>Thu, 08 Oct 2026 09:45:00 +0300</pubDate>
        <title>Russian households in 2025: Better off, but not happier</title>
        <link>https://bankoffinlandbulletin.fi/article/bofit-blog/2026/russian-households-in-2025-better-off-but-not-happier/</link>
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          <category>Russian economy</category>
        
        <description><![CDATA[The latest wave of the Russian Longitudinal Monitoring Survey reveals that Russian households in 2025 enjoyed their best material circumstances in a decade. A record share of households reported they had accumulated sufficient savings to live several months. Even so, the rise in life satisfaction following the 2022 full-on invasion of Ukraine ended last year. The share of respondents reporting serious depression increasing also rose for the first time in eight years. Households said they acquired fewer new durable goods than at any point since 2013. This apparent discrepancy is the division of households into winners and losers arising from Russia’s wartime economy. Material gains and improvements in well-being have gone to the university-educated and those working within the military-industrial complex, while pensioners and other groups have been left behind.]]></description>
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      <item>
        <pubDate>Tue, 06 Oct 2026 10:59:55 +0300</pubDate>
        <title>Euro area economy improving even amid crises</title>
        <link>https://bankoffinlandbulletin.fi/article/summary/2026/euro-area-economy-improving-even-amid-crises/</link>
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          <category>International economy</category>
        
          <category>Monetary policy</category>
        
        <description><![CDATA[The war in Iran and other crises are pushing up energy prices and adding to uncertainty in the euro area. Uncertainty undermines the economic outlook, as it has a restraining effect on consumption and investment. However, the euro area economy has shown good resilience. The improvement in the economy is being underpinned especially by the service sectors, household consumption and investment. Higher energy prices have driven up the euro area’s inflation rate, which refers to the rate of increase in the prices of goods and services. The inflation target for the euro area is 2%, and currently the inflation rate is above this. The European Central Bank (ECB) has raised its key interest rates twice this year, with the aim of returning inflation to target.]]></description>
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      <item>
        <pubDate>Wed, 23 Sep 2026 16:25:00 +0300</pubDate>
        <title>Positive track in Finland’s economy will continue</title>
        <link>https://bankoffinlandbulletin.fi/article/forecast/2026/positive-track-in-finlands-economy-will-continue/</link>
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          <category>Finnish economy</category>
        
        <description><![CDATA[Growth in the Finnish economy has gathered pace and is projected to continue at a significantly brisker rate in the forecast period compared with earlier years. As the economy strengthens, the unemployment rate – which has remained high – will gradually start to fall. Inflation will be pushed up temporarily by energy prices, but the extent of this impact will primarily depend on the duration of the energy supply shock.]]></description>
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