by more than the bank had expected, with more muted price pressures across a wide range of goods and services, consistent with the unexpected increase in excess capacity. bis central bankers ’ speeches • total cpi inflation has also been lower than anticipated, reflecting developments in core inflation and weaker - than - projected gasoline prices. • total cpi inflation is expected to remain around 1 per cent in the near term. it is expected to rise gradually, along with core inflation, to the 2 per cent target in the second half of 2014 as the economy returns to full capacity and inflation expectations remain well - anchored. • despite the reduction in global tail risks as a result of a series of actions by european and american authorities, the inflation outlook in canada is still subject to significant risks. • the three main upside risks to inflation in canada relate to the possibility of stronger - than - expected growth in the u. s. economy, higher canadian exports and renewed momentum in canadian residential investment. • the three main downside risks to inflation in canada relate to the european crisis, more protracted weakness in business investment and exports in canada, and the possibility that growth in canadian household spending could be weaker. • overall, the bank judges that the risks to the inflation outlook in canada are roughly balanced over the projection period. • reflecting all of these factors, the bank today maintained the target for the overnight rate at 1 per cent. • while some modest withdrawal of monetary policy stimulus will likely be required over time, consistent with achieving the 2 per cent inflation target, the more muted inflation outlook and the beginnings of a more constructive evolution of imbalances in the household sector suggest that the timing of any such withdrawal is less imminent than previously anticipated. with that, tiff and i would be pleased to take your questions. bis central bankers ’ speeches

as serving as a potent hedge against inflation. for the broader economy, there are benefits in terms of a continuous build - up of the volume and variety of stock of housing, alongside growth in the population and incomes. potentially, this could also have significant distributional effects and, if housing credit is more inclusive, it can reduce income inequality. furthermore, developed economies, with well - functioning financial systems, such as the united states of america, attest to the fact that citizens can access, in a disciplined and beneficial manner, the so - called “ excess equity ” in their mortgaged properties and use their houses as atms! moreover, with unconstrained growth in mortgage finance and housing, there are incidental economic opportunities relating to the construction industry and related services, thus contributing to economic diversification. distinguished guests, the second point is that such prospects, however, need support in terms of a land tenure policy that facilitates the use of the various forms of land and real estate across the country to secure mortgage financing. this helps in terms of both financing and marketability of land and property countrywide, with the attendant economic opportunities. therefore, the administration, improvement of land procedures and systems ( lapcas ) project, that should ease constraints to using land acquired under different tenures as collateral for mortgages, is a welcome development. in this regard, it is our expectation that bbs and, of course other financial institutions in this country, will respond positively in providing affordable credit that the average household in botswana can access. the third dimension, distinguished ladies and gentlemen, is that the supporting services need to be robust and sound. among others, this relates to professionalism around property valuations to ensure that the resultant loan financing is aligned to housing market realities ; thus safeguarding the interests of both the financier and the customer ; respectively, as well as the soundness of financial institutions and welfare of households. going forward, the development of a credible property price index and enhancement of sharing of credit information through well - organised credit bureaux would be helpful. therefore, we agree with the observation made by the centre for affordable housing finance in africa, in their 9th edition of the housing finance yearbook, that “ a combination of a good macroeconomic environment, sound policy, better data and increased access to affordable credit ” should spur the development of a vibrant housing market to the benefit of a large segment of the population. fourth, appropriately structured resource mobilisation is key to successful provision of housing finance