which consists of market participants, experts and regulators. we have also had the benefit of an array of expert views, including those of the ministry of finance which were indeed valuable in giving final contours to the framework. the operational aspects were commendably dealt with by the rbi - sebi standing technical committee and i must highlight the exemplary inter - regulatory coordinative approach that has been the hallmark of the entire process. a similar approach is now being adopted in respect of interest rate futures as well and we may see a fruition of efforts in this regard in a short time. in this regard, i express deep appreciation of the contribution made by sebi, and in particularly the chairman, in bringing this to fruition. i congratulate nse for putting in place the platform in a short time and ensuring a sizeable number of members at the initial start itself. i believe the currency futures market will seamlessly complement the existing otc market. as you may be aware, in all countries, including developed markets, otc segment dominates foreign exchange transactions. the introduction of currency futures, i am sure, will provide further depth and breadth to the market and fulfill their intended objective as an effective risk management instrument. i would also like to take this opportunity to urge all the market participants to leverage this significant milestone for skill development within as well as at a broader industry level. on behalf of rbi, i would like to assure our continued commitment to orderly and well thought out development of financial markets, while maintaining financial stability and integrity.

complete an ambitious restructuring of their financial systems, and implement domestic structural reforms. emerging economies need to expand domestic demand and fulfill commitments to enhanced currency flexibility. ultimately, all countries need to create a more flexible, open international monetary system to complete the transformation to a multi - polar world. the bank of canada is working with other major central banks on this vital international agenda but, ultimately, our most important contribution to the economic welfare of canadians is to continue to deliver price stability as defined by our 2 percent inflation target. in response to the sharp, synchronous global recession, the bank lowered the target rate rapidly over the course of 2008 and early 2009 to its lowest possible level. we almost doubled our balance sheet to provide the financial sector with exceptional liquidity. with our conditional commitment, the bank provided exceptional guidance on the likely path of our target rate. these policies provided considerable additional stimulus during a period of very weak economic conditions and major downside risks to canadian economy. with the initial rapid narrowing of the output gap, the return of employment to its precrisis peak, the highly effective transmission of monetary policy in canada, and the sustained momentum in household borrowing, the need for such emergency policies passed. since the spring, the bank has unwound the last of our exceptional liquidity measures, removed the conditional commitment, and raised the overnight rate to 1 per cent. following these actions, financial conditions in canada have tightened modestly but remain exceptionally stimulative. this is consistent with achieving the 2 per cent inflation target in an environment of still significant excess supply in canada and the demand headwinds described earlier. while canada ’ s circumstances and the discipline of the inflation target dictate a different policy stance than in the united states, there are limits to this divergence. at this time of transition in the global recovery, with risks of a renewed u. s. slowdown, with constraints beginning to bind growth in emerging economies, and with domestic considerations that will slow consumption and housing activity in canada, any further reduction in monetary policy stimulus would need to be carefully considered. the unusual uncertainty surrounding the outlook warrants caution. historically low policy rates, even if appropriate to achieve the inflation target, create their own risks. aside from monetary policy, canadian authorities will need to remain as vigilant as they have been in the past to the possibility of financial imbalances developing in an environment of still low interest rates and relative price stability. conclusion today ’ s venue honours giovanni cab