Global financial markets remained volatile in the second quarter of 2015, which was attributed to the continued divergence among global monetary policies, the uncertainty surrounding the Federal Reserve (Fed)’s normalization plans and developments regarding the Greek debt crisis. In this period, the volatility in long-term rates reached quite high levels, especially across advanced economies (Chart 1), which also affected emerging-market rates. Thus, portfolio flows to emerging-markets weakened (Chart 2). The global economic slowdown of 2014 continued into the first quarter of 2015 largely due to emerging economies. Despite signs of economic recovery in Europe, geopolitical tensions continued to restrain Turkey’s external demand. The volatility across global markets had implications for the Turkish economy as well, causing fluctuations in financial indicators amid domestic uncertainty. In this period of heightened volatility in long-term interest rates of advanced countries and added interest-rate sensitivity in emerging economies, the interest-rate corridor and the tight liquidity policy we have been implementing played a major role in shielding the economy against global shocks. Moreover, our structural and cyclical measures supporting FX liquidity, core liabilities and long-term borrowing strengthened the economy’s resilience. 1. Monetary policy and financial conditions  In view of the uncertainty over global markets and the volatility in food and energy prices, we maintained a cautious monetary stance in the second quarter of 2015. In this period, we kept interest rates unchanged, but continued with the tight liquidity policy to contain risks to core inflation and inflation expectations.

Notable innovations that came under Mr. Masud’s time include the commissioning of the bank’s Branch Queue Management System at its Mutaba and Kafue House branches and Northend ATM Lobby, as well as the launch of Premier Banking. Barclays Bank Zambia Plc may have not pioneered all of these innovations, but they have provided reasonable competition to their colleagues which we at Bank of Zambia believe will be of benefit to the Zambian financial sector in the medium to long-term. It is my expectation that Barclays Bank Zambia PLC will continued to contest the market in a meaningful and beneficial way. Let me also acknowledge the contribution made by Barclays Bank Zambia Plc under Mr. Masud through the bank’s partnering with the corporate world to cosponsor the first ever Euromoney Investors’ Conference in Zambia. In addition, it is worth mentioning that BAZ, under the chairmanship of Barclays Bank Zambia Plc and Mr. Masud, helped initiate the beautification of Cairo Road by adopting the maintenance of its wonderful gardens. The positive change to our immediate surroundings particularly around the Bank Square is there for all to see. Further, Barclays Bank Zambia has continued to work closely with Junior Achievement Zambia where I serve on the Board. The bank has been providing office space as well as hosting the meetings of Junior Achievement at its premises. As a matter of fact, on 22 February, 2009, the Junior Achievement Worldwide/Barclays Bank partnership was launched in Dubai.