elements. this approach allows the participants to exploit potential business opportunities while fulfilling certain social responsibilities. 6. cross - border exchange and cooperation are imperative. apart from taking into full consideration the elements of time, place and people, we can benefit from observing the achievement of others in financial innovation. for products or services that are sophisticated or distinctive, we can study the concepts, repackage or adapt them for introduction to the local market. much can be gained and shared from getting to know other markets through cross - border exchange. through mutual understanding and interaction, we have better understanding of other markets and hence better knowledge. since the return to the motherland and the signing of the closer economic partnership agreement ( cepa ), economic ties between hong kong, macao and the mainland have much strengthened. there will be profound implications if trade transactions between these places can be settled in renminbi. this is a form of financial innovation which can only be materialized through cross - border cooperation involving not only the trading of commodities but also cooperation between the governments concerned. now, i would like to share with you another live experience. as we all know, since the return to the motherland, the macao sar government has been trying to turn macao into a service platform for the mainland and portuguesespeaking countries by capitalizing on the historical relationship that macao built up with the latter. financial cooperation between portuguese - speaking countries and msar has flourished from mere acquaintance. in september 2006, the bank of china ( macao branch ), bpi of portugal and its angolan subsidiary, bfa, signed a tri - partite cooperation agreement in the annual “ macao international trade & investment fair ” ( “ mif ” ). this agreement covers financial services including remittance made available to chinese enterprises and workers in angola. this appears to be a very simple cooperation arrangement. however, a closer look shows a few special features. traditionally, similar arrangements involve only two parties. now, this one involves one more party for a specific reason. the arrangement is not concluded for business between macao and angola or between macao and portugal. it is specially arranged for transactions between angola and the mainland. from this example, there is great potential for financial innovation in the area of cross - border cooperation. besides, we believe that much can be achieved between the pan - pearl delta region and its brother provinces and regions, between macao and the mainland, as well as between the mainland and portuguese - speaking countries

mark carney : summary of the latest monetary policy report opening statement by mr mark carney, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, 20 october 2010. * * * good morning. tiff and i are pleased to be here with you today to discuss the october monetary policy report, which the bank published this morning. the global economic recovery is entering a new phase. in advanced economies, temporary factors supporting growth in 2010, such as the inventory cycle and pentup demand, have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon. the bank expects that private demand in advanced economies will become sufficiently entrenched to sustain the recovery. however, the combination of difficult labour market dynamics and ongoing deleveraging in many advanced economies is expected to moderate the pace of growth, relative to prior expectations. these factors will contribute to a weaker - than - projected recovery in the united states in particular. growth in emerging - market economies is expected to ease to a more sustainable pace as fiscal and monetary policies are tightened. heightened tensions in currency markets and related risks associated with global imbalances could result in a more protracted and difficult global recovery. the economic outlook for canada has changed. the bank expects the economic recovery to be more gradual than it had projected in july, with growth of 3. 0 per cent in 2010, 2. 3 per cent in 2011, and 2. 6 per cent in 2012. this more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending. overall, the composition of demand in canada is expected to shift away from government and household expenditures towards business investment and net exports. the strength of net exports will be sensitive to currency movements, the expected recovery in productivity growth, and the prospects for external demand. inflation in canada has been slightly below the bank ’ s july projection. the recent moderation in core inflation is consistent with the persistence of significant excess supply and a deceleration in the growth of unit labour costs. the bank judges that the output gap is slightly larger and that the economy will return to full capacity by the end of 2012 rather than the beginning of that year, as had been anticipated in july. the inflation outlook has been revised down and both total cpi and core inflation are now expected to converge to 2 per cent by the end of 2012, as excess supply in the economy is gradually absorbed and inflation expectations remain well - anchored.