since 1 / 4 bis - central bankers'speeches moderated to 5 percent, and the most recent data indicate that this trend of slowing inflation is continuing. still, inflation is well above the fomc's longer - run goal of 2 percent. this inflation target is an important bedrock principle for the fomc. it provides a " north star " for policy decisions and helps to improve the public's understanding of our goals and actions. 1 we are committed to attaining - and maintaining - a sufficiently restrictive policy stance to achieve our 2 percent longer - run goal. indeed, throughout this period of high inflation, one of the bright spots is that various measures of longer - run inflation expectations have remained remarkably well anchored and consistent with our 2 percent target. 2 imbalances endure our most important policy tool is the setting of the target range for the federal funds rate, which influences demand for goods and services by affecting borrowing costs. so far, tighter monetary policy from the federal reserve and central banks around the world is helping to bring a better balance between supply and demand. inflation has declined in a number of sectors, particularly for many categories of commodities and goods. in addition, the supply - chain bottlenecks that had constrained the supply of goods have largely dissipated. for example, the new york fed's global supply chain pressure index has declined to a level that indicates supply pressures are now actually somewhat lower than normal. 3 i hear the same from business leaders from around the federal reserve's second district, who confirm that supply chains have improved considerably. at the same time, data on rents for new leases provide early signs of slowing inflation for shelter. this is important because shelter inflation had been a significant driver of higher inflation over the past year. however, despite the moderation of inflation, imbalances endure, with overall demand still exceeding supply in the economy. this is seen in the inflation rate for core services excluding housing, which has been running around 4 - 1 / 2 percent since last august. fomc actions against this backdrop, the fomc has taken decisive actions to curb demand, restore balance to the economy, and bring inflation down. last month, the fomc raised the target range for the federal funds rate to 4 - 3 / 4 to 5 percent, its ninth consecutive increase. in its post - meeting statement, the fomc said it " will closely monitor incoming information and assess the implications for monetary policy. " 4 2 / 4 bis - central

people it is our conviction that the number of zambians to have access to banking services will increase. we therefore encourage as many zambians as possible to use these facilities. to the residents of chilenje, i urge you to utilize the services offered by barclays bank, otherwise the bank may opt to close its branch due to lack of business and you will be left with no bank in your area. you must recognize that the era of keeping monies in mattresses is long gone. we recognize that barclays has obviously seen a window of opportunity in opening its branches in such localities. however, it is important to note that the level of incomes in such areas is not at the same levels as for those that obtain their services from high street locations. in this regard, we urge barclays and other banks opening their branches in these communities to design suitable products. the banks should structure the related costs such that they take into account the lower income status of their clients. i have in mind the withdrawal of small sums of money without necessarily charging for the withdrawals. the challenge of extending access to financial services to the remaining adult population still remains, and for this unbanked population cost is a major consideration. ladies and gentlemen, i am aware that the demand for banking services is high in chilenje and therefore barclays bank should consider moving to bigger premises. there are a number of longstanding neighbourhood businesses in this location. i can point at sir jack, janu plaza, karibu bakery and robert ’ s fish and vegies. there are also business entities which were formally parastatals located here. i also know that private entities that have a national presence such as zambeef plc and pama meats have established branches here. this is a reflection of the economic viability of chilenje township and barclays has done well to come here. ladies and gentlemen, as you are aware the zambian economy has taken a turn for the better over the last few years. we are fortunate that the rise in copper prices has created a greater interest to invest in the mines. we have also witnessed increased investment in other areas such as agriculture, tourism, construction and manufacturing. this has culminated in a 25. 6 % increase in non - traditional exports to us $ 845. 1 million by november 2007. this obviously gives a wider spread of lending opportunities for the banking sector. it is important to note that this growth in non - traditional exports is to a large extent associated with