the farm sector as a measure to improve banks ’ compliance rate. we will work closely with officials of both houses of congress, with you the banking community and other concerned stakeholders, as we pursue the enactment of these important legislative measures. conclusion and so - as bsp moves into the story of our future, let me reiterate that every thought, every word, every act of bangko sentral is an opportunity to make a difference for a better quality of life for every filipino. we will be steadfast in this pursuit and we will continue to reinvent ourselves through fresh ideas, calculated risks, and game - changing reforms. supported by the magnanimity and professionalism that have been the hallmarks of the bsp ’ s service to the nation, the bsp community will remain the vanguard of an independent and credible bsp. katapatan, talino, at husay para sa bayan, para sa filipino. before i end, on behalf of the monetary board and the entire bangko sentral ng pilipinas, i would like to thank the leaders of the banking community for supporting the reforms we have pursued through the years and for helping maintain a banking system that is sound and responsive to the needs of the economy and the filipino people. my bottom line tonight is simple. we will count on your continued support, 1 … …. and …. please continue following the rules. if you do this, we can all sleep soundly at night. toast to proceed with the next part of the program, let me now call on the members of the monetary board to join me on stage : finance secretary sonny dominguez, philip medalla, juan de zuniga, peter favila, tony abacan, and bruce tolentino. please join us and raise your glasses to the central bank for its 70 years of distinguished service … to the banking community and the men and women of the bangko sentral ng pilipinas, that we may all remain strong, stable, and resilient in the face of challenges and be vehicles of growth and development for our ultimate boss – the filipino people. cheers! thank you and have a good evening! 1 imf, wb, and adb project the philippines to grow between 6. 2 to 6. 6 percent in 2019 – 2020, broadly in line with the national government ’ s revised growth targets of 6. 0 to 7. 0 percent in 2019 and 6. 5 to 7. 5 percent in

francois villeroy de galhau : monetary policy transmission speech by mr francois villeroy de galhau, governor of the bank of france, at the annual general meeting of the international capital market association ( icma ), paris, 25 may 2023. * * * ladies and gentlemen, it is a pleasure to deliver this address at this icma's conference in paris, and i would like to pay tribute to your collective contribution to capital markets. let me thank among others bryan pascoe, rene karsenti, mandy defilippo and the icma french regional committee. in particular, icma's emphasis on sustainable finance perfectly echoes our call alongside christine lagarde for a " green capital markets union ". it is an important way forward for europe in the coming years. in the short and medium term, let me focus today on the transmission of monetary policy. in the euro area, inflation has begun to fall back, from 10. 6 % in october 2022 to 7 % in april, after 6. 9 % in march, and is expected to recede by the end of the year. but it will still be too high. and while headline inflation has been declining, underlying price pressures are showing persistence. the governing council has already taken prompt and forceful actions to tighten the stance of monetary policy. the increase in policy rates since 2022 has been exceptionally rapid by any historical standards : 7 hikes in less than ten months, amounting to + 375 basis points. the primary question today is not so much how much further we need to go with interest rate hikes, but how large is the pass - through of what is already in the pipe. overall, evidence shows a quick and smooth pass - through of ecb decisions to broad financing conditions, which is the first step of monetary policy transmission. the growth rate of bank loans to households and firms has slowed due to a combination of higher borrowing rates, lower demand, and - for firms - tighter credit standards. volumes of loans are decelerating, even though growth in outstanding amounts remains positive [ + 3. 3 % in the euro area for mortgages to households and + 5. 2 % for loans to businesses ]. by the way, the growth of loans in france remains significantly higher than in the euro area average. the second step of monetary policy transmission goes from the overall financing conditions to the economy and to inflation. in the textbook theory, tighter financial conditions moderate aggregate demand, and then decrease