government bonds rose marginally by 10 basis points to 11. 3 %. 12. the stock of government securities outstanding increased by 5. 6 % to k9, 940. 9 billion at the end of the fourth quarter from k9, 411. 2 billion in the third quarter. this was mainly accounted for by an increase of 13 % in the amount of treasury bills outstanding against a modest growth of 0. 2 % recorded for government bonds. despite this, government bonds accounted for the largest proportion of the outstanding total stock of marketable securities, contributing k5, 439. 4 billion ( 54. 7 % ) to the entire portfolio. total treasury bills in circulation amounted to k4, 501. 5 billion, representing 45. 3 % of the total marketable securities outstanding. 13. investment in treasury bills held by non - residents increased to k497. 0 billion from k8. 8 billion in the third quarter. the increase reflected renewed confidence in short - term government paper. conversely, foreign investment in government bonds decreased to k127. 9 billion from k150. 5 billion recorded in the third quarter, due to net maturities. collectively, total holdings of government securities by non - resident was k625. 4 billion, representing 7 % of total securities outstanding. 14. developments in commercial banks ’ nominal interest rates continued to be mixed during the reviewed quarter, with the weighted average lending base rate ( walbr ) trending downwards to 19. 4 % from 19. 8 % in september 2010. similarly, the average lending rate ( alr ) fell to 26. 4 % in december 2010 from 26. 8 % in september 2010. however, the 30 - day deposit rate for amounts exceeding k20 million and the average savings rate ( asr ) for amounts above k100, 000 remained unchanged at 5. 6 % and 4. 7 %, respectively. real sector 15. developments in the real sector were satisfactory during the reviewed quarter. this was reflected by higher output of most monitored commodities, and an increase in investment pledges. figures in square brackets are for september 2010. bis central bankers ’ speeches food reserve agency stocks 16. the food reserve agency ( fra ) had 982, 784 metric tonnes ( mt ) of maize in stock at end - december 2010, up from 162, 956 mt at end - september 2010, out of which, total purchases from the marketing season amounted to 883, 036 mt. the agency also had

too much longer, the effects on economic growth are likely to be significant. for this reason, the risks to the global economy remain tilted to the downside. the combination of these persistent downside risks and continuing low rates of inflation has led investors around the world to expect interest rate reductions by all the world ’ s major central banks. in europe and japan, official interest rates are already negative but investors are expecting the central banks to go further into negative territory. and in the united states, investors are expecting a substantial reduction in interest rates over the period ahead. this is quite a different world from the one we were facing earlier in the year. what all this means for us here in australia is yet to be determined. we need to remember that the central scenario for both the global and australian economies is still for reasonable growth, low unemployment and low and stable inflation. as i discussed a few moments ago, there are a number of developments that are providing support to the australian economy. so we will be closely monitoring how things evolve over coming months. given the circumstances, the board is prepared to adjust interest rates again if needed to get us closer to full employment and achieve the inflation target in a way that supports the collective welfare of all australians, including those who call the northern territory home. thank you once again for joining us this evening and for listening. related information minutes of the june 1968 reserve bank board meeting historical photographs of the reserve bank ’ s presence in darwin 4 / 4 bis central bankers'speeches