rise in inflation does not give rise to broad - based inflationary pressures over the medium term. strong vigilance is warranted with a view to containing upside risks to price stability. overall, the governing council remains prepared to act in a firm and timely manner to ensure that upside risks to price stability over the medium term do not materialise. the continued firm anchoring of inflation expectations is of the essence. turning to fiscal policies, all governments need to fully implement their fiscal consolidation plans in 2011. where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability. beyond 2011, countries need to specify ambitious and concrete policy measures in their multi - year adjustment programmes, so as to underpin the credibility of their fiscal consolidation targets of ensuring a rapid correction of excessive deficits and returning to a close - to - balance or surplus position. strengthening confidence in the sustainability of public finances is key, as this will reduce interest rate risk premia and improve the conditions for sound and sustainable growth. at the same time, it is crucial that substantial and far - reaching structural reforms be implemented in the euro area to strengthen its growth potential, competitiveness and flexibility. in the case of product markets, policies that enhance competition and innovation should, in particular, be further pursued. on the labour market, the priority must be to enhance wage flexibility and incentives to work, and to remove labour market rigidities. the current sovereign debt crisis in the euro area has reinforced the need for an ambitious reform of the economic governance framework of the euro area. the governing council of the ecb is of the view that the legislative proposals which have been put forward by the european commission go some way to improving economic and budgetary surveillance in the euro area. however, they fall short of the necessary quantum leap in the surveillance of the euro area which is necessary to ensure the smooth functioning of economic and monetary union. as outlined in the ecb ’ s opinion of 17 february 2011 on these proposals, more stringent requirements, more automaticity in the procedures and a clearer focus on the most vulnerable countries with losses in competitiveness are required to ensure that the new framework will indeed be effective in the long run. we are now at your disposal for questions. bis central bankers ’ speeches

marion williams : fund management in the caribbean – rapid growth and regulatory challenges address by dr marion williams, governor of the central bank of barbados, at the caribbean centre for monetary studies ( ccms ) 11th annual policy level seminar, port - of - spain, 25 may 2007. * * * mr. chairman, dr. ramsaran ; minister sahadeo ; governor ewart williams ; deputy governors ; mr. kelvin sargeant. i wish to congratulate the caribbean centre for monetary studies centre ( ccms ) on the choice of the theme for this year ’ s seminar. the ccms is in the process of restructuring itself. as part of the restructuring it is intended that the ccms spreads the scope of its coverage beyond central banks and commercial banks to include investment banks, mutual funds and securities companies, as well as insurance companies, some of which currently fall under the jurisdiction of some central banks. the timing of this seminar is also in recognition of the fact that an increasing proportion of funds are now invested under management. regional issues also, in the glare of globalisation and regionalisation the region is facing both old and new challenges, among them is the need to increase the ratio of our savings and investment in order to fund development. some of the more pressing features and challenges include : • slow growth in some jurisdictions ; • rising fiscal debt burdens ; • sluggish and disproportionate job creation ; • loss of economic and human capital / potential ; • global competition from new economies – attacks on both the trade and service sectors ; • an increasingly ageing population - a threat to the subsistence of national social security systems. these challenges, however, also offer opportunities. there can be positive outcomes if the correct procedures and frameworks are put in place and these challenges can also serve to harness fully the growth enhancing potential of the financial sector and enhance its role in the region ’ s development. with increasing assets under management, the investment industry faces several challenges that must be addressed to ensure that the interests of both the investors and the asset managers are best served. in some jurisdictions growth of funds outside the banking system has been more rapid that the growth of deposits of commercial banks. this means that the funds management sector deserves increasing attention. in recent years, there has been an increase in investor interest and consequently, a rapid emergence of investment products being offered to both retail and institutional investors. there has been a spurt in the growth of investment vehicles such as mutual funds, pension funds