Bank of Finland Bulletin - Articles on the economy from the Bank of Finland
Download list
Creating PDF file, please wait...
✅ PDF generated successfully!
❌ PDF generation failed. Please try again.
The amount of liquidity in the banking system has been declining as assets acquired under the European Central Bank’s purchase programmes mature. As liquidity declines further, banks will have a growing demand for the Eurosystem’s standard refinancing operations. When this demand grows sufficiently, the supply of liquidity will be supplemented with new structural refinancing operations and asset purchases in a structural bond portfolio.
In the euro area, movements in energy prices have at different points in time had different effects on core inflation. These effects emerge with a lag, because it takes time for energy prices to pass through to other prices. Inflation expectations in the euro area are currently stable. This moderates the impact of energy shocks on core inflation.
Services have been the main driver of economic growth in the euro area since the COVID-19 pandemic. The picture nevertheless varies from one industry to the next. Growth in the traditional service industries is slower than in information and communications. The wider adoption of artificial intelligence and robotics would strengthen productivity.
