A revision in the monetary policy stance may be considered should the fiscal stance deviate significantly from this framework, and consequently has an adverse effect on the medium-term inflation outlook. Increasing government saving, thus sustaining fiscal discipline, under current circumstances is essential to control the current account deficit driven by the divergence between domestic and external demand. Therefore saving the extra tax revenues driven by the stronger-than-expected economic activity would not only reduce financial stability risks, but also enhance the effectiveness of the new policy mix. 10  BIS central bankers’ speeches  Monetary policy in the period ahead will continue to focus on building price stability on a permanent basis. To this end, the impact of the macroprudential measures taken by CBRT and other institutions on the inflation outlook will also be assessed carefully. Fulfilling the commitment to maintain fiscal discipline and strengthening the structural reform agenda in the medium term would contribute to the improvement of Turkey’s sovereign risk, and thus, enhance macroeconomic stability and the price stability. Maintaining fiscal discipline will also provide more room for monetary policy maneuver and support the social welfare by keeping interest rates permanently at low levels. I would like conclude my remarks by reiterating that implementation of the structural reforms envisaged by the MTP and the European Union accession process remains to be of the utmost importance. Thank you for your attention. BIS central bankers’ speeches  11

Muhammad bin Ibrahim: Major milestone for financial integration in ASEAN Remarks by Mr Muhammad bin Ibrahim, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Luncheon, hosted by Bank Mandiri, Kuala Lumpur, 6 July 2017. * * * I am pleased to be here today to deliver the remarks for the lunch gathering hosted by Bank Mandiri. I am confident that Bank Mandiri will be the first Qualified ASEAN Bank in Malaysia, a major milestone for financial integration in ASEAN. Indonesia and Malaysia – neighbours and friends Let me start with the close relationship between both of our countries. Our relationship extends beyond our geographical proximity but is bound by our similarities in language, culture and of course – food. These natural forces have allowed us to forge and strengthen a strong history of cross-border trade and investments. Businesses from both countries have also strongly committed to invest and contribute to each other’s socio-economic development. Malaysian companies have made significant investments in Indonesia, amounting to USD12.1 billion at end 1Q-2017. These investments span the financial services, telecommunication and agriculture sectors. In fact, the collaboration between Malaysian and Indonesian corporates gave birth to Malindo Airways Sdn Bhd in 2012. It speaks volume of the partnership and close cooperation between our two countries. Indeed this venture will further open up ASEAN skies and expanded the close ties between the people of Indonesia and Malaysia. Over the last few years, Indonesian firms have also started to increase their presence in Malaysia.