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I Monetary policy, interest rates and the value of the markka
A flatter yield curve?
Long interest rates, i.e., bond yields, have been in upward motion since early February. The shortest market rates, i.e., Helibor rates, remained moderately stable up to late spring, but they also tried to rise during the summer. The Bank of Finland allowed the short rates to rise until the end of the summer, but the interest peaks at the end of August seemed too high even from the central bank's point of view. The early-summer policy of unrestricted interests rate climbs was changed to one that curbs both interest rates and obvious market excesses. In the beginning of ...