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 Bank of Finland’s Governor is a member of the Governing Council of the ECB, and thereby the Bank participates in the decision-making of the ECB. The Governing Council is the highest decision-making body of the Eurosystem and makes all decisions on euro area monetary policy. Since the Governing Council operates on the principle ‘one member, one vote’, each member has equal opportunity to influence decisions.
All members of the Governing Council form their views independently. Their objectives are not to pursue national interest but to act for the benefit for the euro area as a whole. The Bank of Finland Governor must at all times have a clear picture of economic developments in the euro area and the world economy, and therefore Bank of Finland experts compile many kinds of information to support the Governor's decision-making.
As an active contributor to monetary policy decisions, the Bank of Finland plays two important roles: on the one hand, representing Finland and Finnish views in the Eurosystem and, on the other hand, explaining in Finland how the single monetary policy affects the national economy and its implications for economic decision-making in Finland.
Bank of Finland experts monitor and assess economic developments and policies in the euro area and Finland and compile background information and forecasts. Some of the forecasts are drawn up independently and others jointly with the ECB and the other national central banks in the euro area. The Bank of Finland also develops and upgrades tools used in forecasting and other economic analyses, such as macroeconomic models.
The Bank of Finland publishes regular assessments of the economic situation around the world, in the euro area and Finland in the Bank of Finland Bulletin.