They will not be solved with miracle cures or ill-advised changes to individual aspects of monetary policy conduct. Monetary policy works. However, it needs support, along with necessary reforms to strengthen its effectiveness. There are no alternatives. But under today’s conditions, where developments in global markets have more direct impact on the Icelandic economy, it is vital for all economic policy measures to have a coordinated focus on restoring macroeconomic stability. This must be the priority. The same principle applies in all countries in a similar position, not least in relatively small and open economies. Relaxing the stance of monetary policy is by no means the answer and it is important not to undermine its credibility. On September 6 this year, the Board of Governors of the Central Bank of Iceland decided to leave the policy interest rate unchanged at 13.3%, as it has been since December 2006. The Board of Governors considered that the short-term inflation outlook had deteriorated somewhat since the previous interest rate decision in July, but long-term prospects were unchanged. Exchange rate developments were highly uncertain and would largely be determined by developments in global financial markets. The Board of Governors concluded its announcement by reiterating its commitment to attaining the inflation target within an acceptable timeframe. The next interest rate decision by the Board of Governors will be announced on November 1, 2007, coinciding with the publication of Monetary Bulletin and the Bank’s new macroeconomic and inflation forecasts. The twelve-month rise in the CPI in September measured 4.2%.

Singapore is home to many foreign nationals and migrant workers who send money back to their home countries frequently. If we can make cross-border remittances cheaper and faster, our migrant workers can provide better and more timely support for their families. 2 / 10  BIS central bankers' speeches  Three years ago, the Monetary Authority of Singapore (MAS) embarked on a pioneering journey with the Bank of Thailand: to link our respective national faster payment systems – PayNow in Singapore, and PromptPay in Thailand. I am happy to say that the PayNow-PromptPay linkage will go live by mid-2021. Anyone who registers for PayNow or PromptPay will be able to send money directly from Singapore to Thailand, or vice versa, using just their mobile phone numbers – instantly, securely, at competitive rates, and at any time of the day. This linkage between two countries’ national faster payment systems will be the first-of-itskind in the world. We will start off with a small group of banks on both sides, and scale up participation to include more banks and non-bank providers over time. MAS is keen to partner other central banks in the region to expand the linkage, so that more people across Southeast Asia can benefit. Timely Health Insurance Claims Next, pain points relating to making an insurance claim for hospitalisation. Today, an individual being hospitalised may face uncertainty over his claimable insurance amount. Hospitals have to access multiple systems to request for or provide information to different insurers; and some of these processes are still paper-based.