To meet the recently growing liquidity need, the weight of marginal funding was increased and, as a result, the CBRT average funding rate increased (Chart 3). The CBRT average funding rate has been hovering around 8.5 percent since midJune (Chart 4). The BIST Interbank overnight rate, on the other hand, remained close to the upper bound of the corridor as in the previous reporting period. BIS central bankers’ speeches  1  Thanks to the cautious monetary stance, the yield curve remained nearly flat. Although the yield curve has remained basically unchanged since the publication of the previous Inflation Report, there was a slight increase in the market rates with more than two-year maturity (Chart 5). Thus, the spread between the overnight repo rates at the BIST Interbank Money Market and 5-year market rates has narrowed somewhat (Chart 6). I would like to reiterate that we will monitor inflation expectations, pricing behavior and other factors that affect inflation closely and maintain the cautious monetary policy stance by keeping a flat yield curve until there is a significant improvement in the inflation outlook in the upcoming period. The wide interest rate corridor and the tight liquidity policy that we have been implementing reduce the economy’s sensitivity to global shocks, thus supporting financial stability and facilitating the attainment of the price stability objective. In the post-crisis period, the unconventional policies of advanced economies and the ongoing uncertainties over global monetary policies caused long-term interest rates in these economies to fluctuate.

François Villeroy de Galhau: What responses to terms of trade shocks in poor and vulnerable countries? Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Bank of France-FERDI (Fondation pour les Etudes et Recherches sur le Développement International) conference, Paris, 24 January 2017. * * * Good morning and welcome to all in the auditorium of the Banque de France. It is a great pleasure to welcome you here with Patrick Guillaumont, President of FERDI and coorganiser of this conference, to whom I extend my warmest greetings. I would also like to welcome Jan Gunning, Professor Emeritus at the Free University of Amsterdam, as well as all the speakers who honour us with their presence. The Banque de France has established research partnerships with several foundations and universities: the Paris School of Economics, the Toulouse School of Economics and the Fondation nationale des Sciences politiques. The partnership with FERDI (Fondation pour les études et recherches sur le développement international), which we are pleased about, focuses on extending and enriching discussions and research on monetary and financial issues related to development, including: the financing of development, in particular the mobilisation of domestic and international savings, the competitiveness of African countries and exchange regimes and strategies, regional integration in Africa, which was the theme of our first conference in 2014, the “curse” of commodities in low-income countries, and the management of the Dutch syndrome and the terms of trade cycles, i.e.