That took the form of explicit guidance to depress expectations of future interest rates; and largescale asset purchases financed by the issuance of reserves – colloquially known as quantitative easing. Let me start with forward guidance, which has particularly attracted academic interest. 1 By holding rates “lower for longer”, the central bank can implement an optimal, yet time-  1  See e.g. Paul Krugman (1998), “It's baaack: Japan's slump and the return of the liquidity trap.” Brookings Papers on Economic Activity, pp.137–205; Gauti Eggertsson and Michael Woodford (2003), “The Zero Bound on Interest Rates and Optimal Monetary Policy.” Brookings Papers on Economic Activity 34.1, pp.139–235; Campbell, J. R., Evans, C. L., Fisher, J. D., & Justiniano, A. (2012), “Macroeconomic Effects of Federal Reserve Forward Guidance.” Brookings Papers on Economic Activity, pp.1–80. BIS central bankers’ speeches  1  inconsistent, path for rates that boosts demand today, by lowering future nominal rates and by raising future inflation. It is time inconsistent because, when the future comes, it will no longer seem appropriate to go through with the promised inflationary episode. Because policy committees cannot tie the hands of their successors, I do not believe such timeinconsistent strategies can be credibly implemented other than over rather short horizons. Of course, all central banks provide guidance regarding the economic outlook and the factors determining policy so as to influence expectations. Several central banks, such as the Reserve Bank of New Zealand and the Swedish Riksbank, go as far as providing forecasts of their own future policy decisions.

•  This means that you will be able to make payments through FAST as long as you know the payee’s mobile number. BIS central bankers’ speeches  3  •  May I suggest to the industry to go one step further and explore an “all-in-one” addressing system? •  This means being able to pay someone through FAST using also the payee’s email address, social network account, or other proxies. Unified Points-of-Sale Let me move on from card issuance to card acceptance. In Singapore’s retail payment scene, multiple Points-of-Sale (POS) terminals at the payment counters are a common sight. They are a source of clutter and inconvenience. And as more stores and restaurants introduce self-checkout facilities to improve productivity, these multiple terminals have become a source of confusion as well. Our vision is a unified POS – a single terminal, preferably mobile, that can read all kinds of cards. This will: •  allow merchants to enhance efficiency by simplifying front-to-back process integration; and  •  enhance the shopping or dining experience of customers. A unified POS requires merchant acquirer systems to be able to communicate with one another. This interoperability can be achieved through standardisation. The technology exists but it requires some effort and some cost. I am pleased that The Association of Banks in Singapore has formed a working group to look into standardising the POS applications to operate efficiently and seamlessly. I commend them for their resolve to address a long-standing bane in our retail payment scene.