mr george identifies two distinct issues relating to monetary policy in the united kingdom speech by the rt hon eddie george, governor of the bank of england, to the cbi annual luncheon at the guildhall in london on 25 february 2000. * * * thank you chairman, ladies and gentlemen, i would normally open my remarks on occasions such as this by saying what a pleasure it is to be here. but central bankers need to time their appearances before cbi audiences with very great care. and i ’ ve clearly failed on this occasion. the exchange rate is strong - many would say excessively strong and the latest movements in interest rates have been upwards. typically that is likely to mean that i ’ ve entered a lion ’ s den! well i hope you ’ ve all enjoyed your lunch as much as i have - because i once dreamt that daniel, who must have been one of my ancient forebears, and who knew a bit about entering a lion ’ s den, gave me some very good advice. he said to me in my dream, “ if you really must do it then make sure that the lions have been well fed first - they might just drop off to sleep! ” looking around, i see there is something in what he said! daniel also said, “ whatever you do, don ’ t provoke them! ” well at the risk of ignoring this advice i should like to establish just what sort of lions you all are! so i ’ d like to begin by taking an opinion poll! i ’ d like to put to you two questions. the first is how many of you agree that monetary policy should have the control of inflation as its overriding objective? may i ask all those of you who agree that monetary policy should have control of inflation as its overriding objective, please, to raise a hand. now please would those who disagree that monetary policy should have control of inflation as its overriding objective please raise a hand. now let me ask you a second question - and i ’ m afraid that only those who voted in favour in response to the first question are entitled to vote this time - i don ’ t want a biased result. given the objective of control of inflation - the 2½ % inflation target - please would those of you who think interest rates should be higher than they are at present raise a hand? please raise a hand now if you think interest rates are at the right level? and will those of you who think that interest rates should be lower than

education shocks arising from the pandemic could signify the largest reversal in human development on record, equivalent to erasing all the progress in human development of the past six years4. the risk of reversing progress in achieving financial inclusion is accentuating why financial inclusion matters now more than ever. optimising islamic finance for inclusive economic recovery policy and regulatory responses across the globe, and likewise in malaysia, have been focused on safeguarding economic resilience, managing risks to financial stability and minimising repercussions to society. this is done in tandem with the different stages of the pandemic – namely, containment, stabilisation and recovery. at the onset of the crisis, governments along with financial regulators have deployed sizeable stimulus packages and various assistance programmes in order to contain the crisis and stabilise the economy. this includes addressing demand and supply disruptions, maintaining cash flows and keeping workers employed. in malaysia, the total stimulus package amounted to usd 73. 55 billion ( rm3056 billion ) with an additional fiscal injection by the government totalling 1 / 4 bis central bankers'speeches rm45 billion. as at september 2020, a total of 2. 63 million workers and 321, 000 employers had benefitted from the wage subsidy programme, involving an expenditure of rm10. 4 billion. to provide further stimulus to the economy, the bank has reduced the overnight policy rate ( opr ) by a cumulative 125 basis points ( from 3. 00 % to 1. 75 % ) this year, alongside reduction in the statutory reserve requirement by 100 basis points ( from 3. 00 % to 2. 00 % ). the reduction in the opr is intended to provide additional policy stimulus to accelerate the pace of economic recovery. the financial industry, including islamic financial institutions, also lent support to their borrowers and customers. in the first half of 2020, a total of rm120 billion7 was disbursed in lending / financing to smes, with more accounts being approved8 in aggregate in 2020 compared to the same period in previous years. islamic financial institutions and related associations have been actively educating and reaching out to affected borrowers about the financial assistance programmes available in response to the pandemic. the takaful and insurance industry also facilitated affected certificate holders by offering temporary deferment of contribution and premium to promote continuity of takaful protection coverage. more than 1. 1 million9 certificate and policyholders have benefited from this relief measure. while the