First, while exchange rate policy is effective against imported inflation and domestic cost pressures arising from rapid economic growth, it is less so against inflation in housing rentals and car prices. Even so, housing prices and car prices cannot keep rising rapidly in an environment of weakening economic growth. The measures taken to address supply-side issues in the housing market and public transport will also help to ease price pressures in these two areas. Second, too rapid a rate of appreciation of the Singapore Dollar can significantly hurt our economic performance, especially in light of heightened uncertainty in the external environment. In sum, exchange rate is taking longer than usual to moderate inflation, but it remains our broadest and most effective anti-inflation tool. MAS will continue to keep a close watch on developments in the global economy and price pressures in the domestic economy. The next Monetary Policy Statement will be released as scheduled in mid-October 2012. MAS remains focused on anchoring inflation expectations as economy undergoes restructuring to reduce dependence on foreign labour Looking at medium term, the domestic economic environment will remain challenging for monetary policy. The Singapore economy is making a transition towards productivity-driven growth. This will help to reduce our reliance on foreign labour and raise the wages of low-income Singaporeans. But rising wages must mean rising costs and rising prices, at  BIS central bankers’ speeches  3  least until productivity improvements kick in.

The BNB complies with the guidelines and requests issued by the ECB and pursues the necessary measures for the implementation of the ECB’s legal acts under Regulation (EU) №1024/2013, including by issuing the necessary administrative acts. In this relation, the ECB exercises control over the implementation of all SSM guidelines and standards in the BNB’s work, including with regard to the supervisory review and evaluation process and on-site supervisions. The ECB is conferred specific direct powers towards less significant institutions, in relation to the process of license issuance and revocation, approvals of acquisition and disposal of classified holdings in credit institutions, the issuance of general recommendations, guidelines and instructions, planning and carrying out of on-site inspections, including assuming at any given point in time of direct supervision over less significant institutions. For the purposes of supervision of less significant banks, a structure has been set up with the ECB’s SSM, in which the BNB participates. Within this structure, the issues of supervision over less significant institutions of the SSM participating Member States are discussed. The participation in the Single Supervisory Mechanism also includes providing the ECB with all the information needed for the performance of the ECB’s tasks, including information subject to banking and professional secrecy. The ECB collects fees for conducting its supervisory activities and this principle will accordingly apply to the banks in Bulgaria. 2. Participation in the Single Resolution Mechanism The participation in the SRM follows from the participation in the SSM.