Present:

Executive Board:

Øystein Olsen, Jon Nicolaisen, Egil Matsen, Kjetil Storesletten, Karen Helene Ulltveit-Moe, Kathryn M. Baker, Steinar Juel and Kristine Ryssdal

Alternates:

Arne Hyttnes and Kristine Landmark

Employee representatives:

Mona H. Sørensen and Nina Larsson Midthjell (items 105-110)

Supervisory Council:

Jan Frode Jakobsen (items 106-109)

Management:

Torbjørn Hægeland (items 101-103), Katrine Godding Boye (items 101-103), Henrik Borchgrevink (items 101-103), Ida Wolden Bache (items 101-102), Ingrid Solberg (items 101-102), Per Espen Lilleås (items 101-102), Olav Bø (items 101-102), Ketil Rakkestad (items 101-102), Mari Aa. Walle (item 101), Øistein Røisland (item 102), Henrik Andersen (item 103), Andreas Andersen (items 101-104), Jane Haugland (item 106), Jan Thomsen (item 106), Lars Hammersbøen (item 106), Mads Kristensen (items 107-109), Marius Ryel (items 107-108), Alexander Behringer (items 107-108), Kathrine S. Ottesen (items 107-108), Ingunn Valvatne (items 101-110), Bjarne Gulbrandsen (items 101-110), Kyrre Nilsen (items 101-110)

There were no comments on the meeting notice and agenda.

Item 101/2018 Recommendation to the Ministry of Finance on the countercyclical capital buffer

Discussion document:

• STRICTLY CONFIDENTIAL memo of 8 June 2018

Torbjørn Hægeland and the Governor presented the main elements of the decision basis for Norges Bank's advice to the Ministry of Finance on the countercyclical capital buffer. The decision basis is to be published in Monetary Policy Report 2/18.

The Executive Board discussed the level of the countercyclical capital buffer for banks. In light of the Executive Board's discussions, a draft letter to the Ministry of Finance with a recommendation on the countercyclical capital buffer for 2018 Q2 is to be presented for final consideration at the Executive Board's meeting of 20 June

Item 102/2018 Draft Monetary Policy Report with financial stability assessment
2/18 – Monetary policy analysis and provisional assessments

Discussion document:

• STRICTLY CONFIDENTIAL memo of 6 June 2018

Ida Wolden Bache and the Governor presented the main elements of the draft Monetary Policy Report, including the analyses and assessments of the economic situation and the outlook for monetary policy. They also referred to presentations and discussions at the seminar on the monetary policy situation.

The Executive Board discussed the economic outlook and the monetary policy stance. In light of the Executive Board's discussions and new information, the proposed "Executive Board's Assessment" is to be presented for final consideration at the Executive Board's meeting of 20 June.

Item 103/2018 Financial Stability Report for 2018

Discussion document:

• Memo from Financial Stability of 5 June 2018

Torbjørn Hægeland presented relevant themes for the Financial Stability Report for 2018.

The Executive Board discussed the matter and agreed to the proposed themes being explored in the work on the Financial Stability Report for 2018. The report is to be submitted for consideration at the Executive Board meeting of 24 October 2018.

Item 104/2018 Briefing on relevant matters for Norges Bank Central Banking Operations

The Governor gave a briefing on relevant matters for Norges Bank Central Banking Operations.

Item 105/2018 Minutes of the Executive Board meetings of 25 April and 2 May 2018

Discussion document:

• Draft minutes

The Executive Board approved the minutes of its meetings of 25 April and 2 May 2018.

Item 106/2018 Norges Bank's pension fund – annual report and accounts for 2017

Discussion document:

• Memo from Corporate and Shared Services of 6 June 2018

Jan Thomsen, chairman of the board of the pension fund, presented the main elements of the annual accounts for 2017.

The Executive Board discussed the matter and took note of the annual report and accounts for Norges Bank's pension fund for 2017. The annual report and accounts will be sent to the Supervisory Council for information.

Item 107/2018 Ethical principles for employees. Revisions 2018

Discussion document:

• Memo from the General Counsel/GRC of 6 June 2018

Marius Ryel presented the matter for discussion.

The Executive Board discussed the matter and adopted the changes to the ethical principles for employees of Norges Bank in line with the submitted proposal. The changes will enter into force at the same time as the changes to the Securities Trading Act enter into force.

Item 108/2018 Personal trading rules for the Executive Board's external members etc.

Discussion document:

• Memo from the General Counsel/GRC of 5 June 2018

Marius Ryel presented the matter for discussion.

The Executive Board discussed personal trading rules for the Executive Board's external members. The Executive Board approved that further work be done to revise the Ethical Principles for External Members of Norges Bank's Executive Board. This matter will be presented for final consideration following the incorporation of remarks from the Executive Board's discussions.

Item 109/2018 2018 update of Internal Audit's instructions

Discussion document:

• Memo from Internal Audit of 4 June 2018

Mads Kristensen gave a brief presentation of the matter for discussion.

The Executive Board discussed the matter and adopted the updated instructions for Internal Audit at Norges Bank.

Item 110/2018 Any other business

There was no other business.

The following were distributed for information together with the discussion documents:

• National report from the regional network 2/2018, Memo from Monetary Policy (PPO) of 7 June 2018
• Market Focus 2/2018
• NBIM – GPFG Performance and Risk - Monthly Board Report April 2018
• Consultation response – Energy shares in the Government Pension Fund Global, Letter to the Ministry of Finance of 5 May 2018
• Report from the Audit Committee meeting of 23 April 2018
• Minutes of the Risk and Investment Committee meeting of 23 January 2018
• Real estate management – Report from meetings of the Real Estate Investment Board