Second, we have always kept our banking system supervisory role in-house, even when the notion of separating the monetary authority from financial supervisory authority was held up as a more effective model in more than a few countries. We now see moves to recombine these functions under the central bank post-Great Financial Crisis. The UK, for instance, had restored the supervisory role back to the central bank after a painful episode with the collapse of Northern Rock in 2007. Authorities were widely blamed for inaction, poor coordination and constraints that held back early interventions. Third, is the fact that Malaysia has always relied on a broad policy toolkit, even during the early 1990s when we introduced measures to manage capital flows. It was only in 2012 that the IMF updated their institutional view and began recognising the usefulness of capital flow management measures. More recently, at end-2016, we introduced bold ‘market-correcting’ and prudential measures to ensure the orderly functioning of the domestic financial market. These measures were seen as ‘anti-market forces’ at its inception but they have been proven effective in reducing speculative pressures on the ringgit and imbalances in the domestic foreign exchange market. It has in fact further liberalised the market than the situation before the measures were implemented. Learning from Malaysia’s policy experience There are important lessons behind Malaysia’s approach which are relevant to our policymaking, at least from my perspective. These lessons cut across profession and industry. It is not exhaustive. But I would like to raise 5 points.

Despite almost 10 years of ultra-easy monetary policy, and despite stronger growth and better labour market conditions, some countries are still devoid of inflation. This latest enigma of “missing inflation” has further spurred the search for the next best thing after inflation targeting. It has become increasingly clear that the nature of problems facing policymakers and the underlying heuristics are becoming very complex. What we thought we knew about inflation dynamics has been inadequate and has not factored in many other relevant factors. Inflation dynamics have evolved with structural factors such as the global value chain, demographics, technological advancements and the digitalisation of the economy. In such a dynamic environment, it is only logical to think that one must be pragmatic, flexible and agile. This is why we focused on inflation anchoring without being tied to a single numerical target. To effectively do this, our monetary policy framework will take into account a broader consideration of factors that could affect the domestic economy and financial system. It also allowed us some flexibility to monitor how our monetary policy actions could interact with key issues facing the public, such as distributional implications, cost of living, access to financing and financial inclusion. As we understand these interactions better, our responses, including monetary policy decisions, can be more nuanced and effective. Malaysia’s policy approach has remained relevant Inflation anchoring was not the only thing we did differently. In fact, Malaysia has never shied 4/7  BIS central bankers' speeches  away from taking the path less travelled.