. the year - on - year rate of increase in the cpi slowed after its peak in april this year. the background to this is somewhat weak developments in demand following the consumption tax hike and the substantial decline in crude oil prices since the summer. to avoid any misunderstanding, let me be clear that the additional easing was not a response to the decline in crude oil prices itself. japan, a commodity - importing country, gains a large advantage from the decline in crude oil prices, especially when the decline is caused mainly by supply - side factors such as developments in oil - producing countries as it is this time. on the price front, while the decline in crude oil prices put downward pressure in the short term, it will lead to an improvement in the output gap and to an increase in underlying prices from a somewhat longer - term perspective. the reason for deciding on the additional easing despite this is that the bank judged that we are still in the midst of converting the deflationary mindset and there is a risk that a slowdown in the actual rate of increase in the cpi might delay this conversion. two engines have so far brought the conversion of the deflationary mindset. the first is the bank ’ s strong commitment to achieve the price stability target of 2 percent at the earliest possible time and in a stable manner, and the second is the actual inflation that has been realized under the commitment. although the decline in crude oil prices is desirable over time, if a pause in the actual price increase becomes protracted, the latter engine may be weakened. if this raises doubts on the achievement of 2 percent inflation, there may be a risk that the mechanism of the qqe as a whole will be weakened. therefore, the bank decided to pursue monetary easing more powerfully under the qqe, and to reiterate its unwavering resolution to achieve the price stability target of 2 percent at the earliest possible time through its “ action. ” looking at responses in financial markets, it appears that the bank ’ s resolution to achieve the price stability target of 2 percent at the earliest possible time has been well understood. i believe that many of you also understand it very well. i strongly expect that there will be positive effects of the expansion of the qqe on wage negotiations next spring and on firms ’ price setting. if it is the case, conversion of the deflationary mindset under the qqe will keep going forward. that is the intended effect of the expansion of the

by adopting new oversight regulation. the new regulation brings together the internationally accepted standards for payment systems operation contained in the principles for financial market infrastructures, as well as the european central bank revised oversight framework. in addition, i would like to point out the significant changes that have been done in the domain of payment statistics in accordance with the ecb regulation on payment statistics. the nbrm developed new bylaws on payment statistics, which are expected to generate high quality and comprehensive data, and will provide methodological and operational readiness of payment statistics of the nbrm with that of the european system of central banks. ladies and gentlemen, at the end of my speech i declare the ninth conference on payment and securities settlement systems open, and i wish the chairman, mr michiel van duveren and his colleagues, a successful conference. finally, i wish you all a pleasant stay, hoping that you will take with you nice memories of ohrid, the city with thousands of years of history and beautiful nature that attract the tourists from all over the world. тhank you very much for your participation in our conference. bis central bankers ’ speeches