up with orders. with high demand, businesses felt they could pass on more of their cost increases than usual, and more rapidly. what we learned is that, in some contexts, businesses can dramatically change their pricing behaviour. 2 our economic models and forecasts need to reflect this reality. and finally, we learned - or perhaps relearned - just how much people hate inflation. all of a sudden, people couldn't afford the things they need to live. and while inflation is low once again, many prices are still a lot higher than they were before the pandemic. so people feel ripped off. and that erodes public trust in our economic system. the spike in inflation in 2022 was a reminder that even though inflation was relatively low and stable for 30 years leading up to the pandemic, central banks cannot take public trust for granted. we need to earn that trust, by being clear about our objectives, accountable for our actions, and humble in the face of uncertainty. preparing for the future 3 / 7 bis - central bankers'speeches that brings us to the future. unfortunately, it looks more uncertain than it did before the pandemic. big structural changes are already underway. deglobalization, demographic shifts, digitalization and decarbonization are all having significant effects on jobs, growth and inflation. trade protectionism and economic fragmentation are rising, and the appetite for global cooperation is waning. shifting international relationships are adding uncertainty and costs and altering investment plans. aging populations and changes in immigration policies will also affect the supply and cost of labour. new technologies, including artificial intelligence ( ai ), will disrupt existing industries and create new ones. and the impacts of climate change and the transition to low - carbon economies are becoming more pervasive. monetary policy cannot eliminate any of this uncertainty. but by keeping inflation low and stable, monetary policy can avoid making it worse. so how do we prepare? for 2025, we have set three priorities to help us deliver for canadians in a more uncertain world. we need to work with our international partners to try and shape the future. canada's g7 presidency next year is an opportunity to lead. we also need to improve our analysis, using richer information and better tools to respond to inevitable shocks. and finally, we need to ensure our monetary policy framework is fit for purpose. let me take each of these in turn. work with our international partners we often focus on negative international spillovers - the

and exchange traded segments of the currency futures market. it is generally understood that exchange traded currency futures, rather than being used by the real sector are mostly being driven by speculative interests. currently, the liquidity in exchange traded market is confined to very short - term. if such products are to be positioned as a credible hedging products then the liquidity has to extend beyond short - term. these issues need to be addressed going forward for development of a deep and liquid currency derivatives market for hedging currency risks. use of options while there is increasing interest amongst end - users in using currency options, not many banks in india have scaled up their expertise in this area and the option activity remains confined to just a few banks. this prevents development of an active options market. it is necessary that banks enhance the necessary skill - sets in this product which has been catching the attention of the end - users. while this will give a fillip to market development, the end - users ’ hedging needs will also be met in a more competitive environment. liberalization of net open position limits ( nopl ) of banks another important area is the net open position limits ( nopl ) of banks. large open forex positions have systemic risk implications and need to be monitored closely. however, relaxation in these limits is essential to deepen the currency market as excessive restriction on speculation hinders the development of the market. thus, a fine balance has to be maintained between the need to minimize risk and deepen the forex market in india. data collected by rbi reveals that, at least in the last few months, banks have healthy bidirectional views on rupee ( in contrast to general unidirectional bias ), which have helped promote healthy markets. polling for financial benchmarks rbi has already chalked out a programme to move over to trade - based financial benchmarks from a polling - based system in a gradual and non - disruptive manner. in the last few months, stung by the regulatory actions abroad, many banks have shown a great amount of reluctance to participate in the polling process in india. it needs to be recognized and borne in mind that that the move from a polling based system to trade - based system is a carefully calibrated process and cannot be accelerated at the cost of bringing the system to disruption. bis central bankers ’ speeches it is, therefore, necessary, in the interests of market integrity, for the active players to continue to participate in the polling process till