In this context, we will focus in particular on the possible repercussions of dampened growth dynamics, geopolitical developments, exchange rate and energy price developments, and the pass-through of our monetary policy measures. We will be particularly vigilant as regards the broader impact of recent oil price developments on medium-term inflation trends in the euro area. Turning to the monetary analysis, data for October 2014 support the assessment of subdued underlying growth in broad money (M3), with the annual growth rate standing at 2.5% in October, unchanged from September. Annual growth in M3 continues to be supported by its most liquid components, with the narrow monetary aggregate M1 growing at an annual rate of 6.2% in October. The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) was –1.6% in October, after –1.8% in September, showing a gradual recovery from a trough of –3.2% in February. On average over recent months, net redemptions have moderated from the historically high levels recorded a year ago. Lending to non-financial corporations continues to reflect the lagged relationship with the business cycle, credit risk, credit supply factors and the ongoing adjustment of financial and non-financial sector balance sheets. The annual growth rate of loans to households (adjusted for loan sales and securitisation) was 0.6% in October, after 0.5% in September. The monetary policy measures in place and the completion of the ECB’s comprehensive assessment should support a further stabilisation of credit flows.

Where appropriate, central banks can also encourage industry stakeholders to pursue specific commercialisation opportunities which meet wider financial system needs. In so doing, central banks need to carry the spirit of innovation in their working philosophy, be open to collaborate with the private sector, adopt an agile approach when exploring possibilities, and even be prepared to fail fast within boundaries. 8. At this juncture, allow me to share with you MAS’ journey on Project Ubin, and how this collaboration between the public and private sectors has led to payments innovation that will benefit the ecosystem. When cryptocurrencies and public blockchains first emerged, we struggled to understand what they were and how they worked. The idea that a group of miners linking up blocks into a chain could turn computational power into assets of value was highly bewildering. We too had our doubts and felt that the best way to understand the technology, was to test it out for ourselves and learn through practical experimentation. MAS recognised that distributed ledger technologies held the potential to empower an industry infrastructure for more efficient clearing and settlement of payments and securities. Such an infrastructure would benefit the entire financial sector, but no individual firm had an incentive to drive exploration of this possibility. We thus launched Project Ubin in 2016, which has been through five phases through 2020. Under this project, MAS collaborated closely with industry partners to explore the development of blockchain-based settlement systems and understand the benefits and value it brings.