2022 from 6 % in 2021, this forecast shows. central banks are once again faced with the choice between achieving price stability at the expense of tighter monetary policy with temporary losses in gdp growth, and ignoring inflationary problems and long - term losses in economic development. today's monetary policy involves difficult, and often controversial, decisions. on the one hand, central banks and governments have a common long - term goal of facilitating sustainable economic growth. on the other hand, it is precisely a central bank's mandate to pursue macroeconomic stability in the short and medium runs. this is because an excessive monetary policy response to inflation weakens economic growth and increases the risk of recession. at the same time, tolerating inflation may throw inflation expectations off balance, causing even more prolonged and painful losses to the economy in the future. from this perspective, balancing fiscal and monetary policies is a prerequisite for success. practice shows that an excessive accumulation of fiscal imbalances and fiscal dominance lead to chronic inflation, which eats away at the economy, and to a financial crisis that eventually forces the central bank to give a strong countercyclical response. as a result, the ability of both the central bank and the government to exercise their mandates becomes very limited. to ensure macroeconomic stability and sustainable economic development, we need to start looking for this balance today. we also need to remember that in conditions of uncertainty and varying credibility of the monetary policy, central banks have to be even more active in their stabilization policies to prevent unanchoring of expectations. in addition, in terms of policy instruments, ensuring the efficiency of the transmission channel due to the accumulated structural surplus of liquidity calls for unconventional methods. fortunately, history has many successful examples of combating persistent and excessive inflation and embarking on a path of sustainable development. forty years ago, developed countries took the path of reducing inflation. in addition, today we have a large number of emerging markets whose experience can become key to the global stabilization of economic and inflationary processes. ukraine has this experience too. the nbu has proved its capability to tame and curb inflation during the war. after introducing inflation targeting in 2015, the nbu managed to take inflation down from the record 60 % level and stabilize it at its 5 % target. switching to the floating exchange rate and strengthening the central bank's institutional credibility and independence were the key factors in that success. apart from global challenges, ukraine is currently forced to deal with the fallout from the invasion

example, a fund may invest up to 75 percent of assets in shares, debentures and unit trusts in namibia and the rest of the cma. also, investment in property and property - based instruments, as well as equity investments, which are known for their volatility, are not given lower priority ranking than less volatile investment avenues. in this context, the large equity exposure of retirement funds in namibia is a concern and this has also been amplified by the imf article iv mission to namibia late in 2004. the mission concluded that there is a need to introduce prudential investment limits by type of assets, including specific limitations on the equity risk in line with international best practices. the mission further notes that this should apply especially to defined benefits plans which have 60 percent of their assets invested in equity. as far as the local investment requirement is concerned, it is interesting to note that retirement funds in developed countries have shown a clear “ home bias ” in their investment allocations and have usually stayed well within officially imposed limits. even retirement funds operating in countries that have adopted the “ prudent person ” approach have also exhibited a strong “ home bias ”. let me state, however, that the local investment requirement only makes sense if sufficient, safe and well - performing assets are available. if the local investment requirement is used as a captive source of funds for unproductive purposes, its benefit is lost. let me not dwell further on the regulatory issues, as namfisa, i believe, will address you on this specialist subject matter this afternoon. suffice me to say that i expect a greater namibian content in investment decision with regard to local savings directed towards retirement funds. equally, i expect the key industry participants starting to put up local systems to be able to link up to the national payment system that is provided to them. conclusion ladies and gentlemen, let me conclude by restating the fact that retirement funds will continue to play a very important role in our economy where the twin problems of unemployment and poverty constitute major development challenges. i hope that you will agree with me that well - targeted and pragmatic government intervention in this sector remains indispensable for the time being. these are serious challenges. finally, of equal importance to the development of retirement funds are sound macroeconomic policies and financial stability. retirement funds and other institutional investors cannot function properly in an environment of high inflation, unstable monetary developments and unsustainable fiscal conditions. in this respect, i believe,