capital markets and, also, financial inclusion. the development of a wide range of money and capital markets institutions and instruments enables substitution and access to a variety of purpose - fit saving and investment channels as monetary policy and conditions change ; therefore sustained effectiveness of policy transmission in affecting market activity. a diverse and deep market also allows banks to better manage liquidity positions, hence the ability to effectively transmit policy. in addition, with enhanced financial inclusion, changes in monetary policy are more effective as a greater number of businesses, institutions and households, hold and have exposures that are directly affected by the direction and level of interest rates and availability of loanable funds and market liquidity. communication distinguished guests, the fourth area of focus for the bank, as we look ahead, is communication. the bank considers and uses communication as a direct, practical and potent instrument of policy. it is, therefore, important that in order to generate the desired response, communication is recognised and acknowledged by the market and general public as a policy instrument. however, this is to the extent that such communication is backed by durable integrity and reliability of the bank of botswana, premised on predictability and transparency. public trust and reputation of the bank are essential elements for policy effectiveness. central banks such as the bank of england, the european central bank and the us federal reserve demonstrate such effectiveness where, for example, issuance of forward guidance statements ( without immediate actual change in interest rates ), generate market reaction ; thus change in economic behaviour and activity. more generally, communication works best in an environment of economic and policy awareness by the public as well as informed policy and market analysis and commentary. the combination of economic developments and dissemination of policy analysis and economic projections by the bank helps the public and economic agents to anticipate policy action ; the so - called expectations. for example, expectations about future inflation and, therefore, interest rates, are a key determinant in formulating investment and consumption decisions, hence economic activity. communication also facilitates accountability and various platforms and media are used in this regard. overall, increased transparency and communication, regarding the policy framework, objectives and strategy, as well as decisions and progress in meeting the objectives of the bank can contribute to desired market responses and policy effectiveness. distinguished ladies and gentlemen, at the launch of the bank ’ s monetary policy statement, in february this year, i outlined the refinements that the bank continues to make to the monetary policy framework relating to communication. i indicated that, the more recent

skills transformation, among others. i suggest that, to sustain medium to long - term prospects for the economy, diversified and inclusive growth and transition to high - income status, policy should focus on raising potential growth through structural and fiscal reforms, while maintaining sound macroeconomic policy frameworks and a stable financial sector, as well as rebuilding buffers to boost resilience. the 2018 theme topic is, therefore, a contribution in this regard. distinguished ladies and gentlemen, allow me to introduce to you my colleagues here in the room and, thereafter, call upon the chief financial officer, mr daniel loeto to kick - start the presentations. i thank you for you kind attention.