Reviewing recent economic developments, the Governor stresses the importance of persisting with restraint until the downward pressure on inflation is clearly re-established; and warns that emerging trends in wage settlements and earnings could extend the current setback to progress on the inflation front and lengthen the period of higher interest rates.
He goes on to comment on the need for continuing progress in improving the infrastructure of the financial markets, highlighting in particular the need to eliminate the paper-based settlement system in the securities market and the desirability of a centralised book-entry and transfer system for money-market instruments.
One year on ... the economy and the City - Governor's speech