this requires sustained financial sector focus and dedication to the transformation and development agenda involving both the private and development finance institutions in financing infrastructure, green economy, digital and outward - looking industrialisation. this also requires clarity of roles of development finance 2 / 3 bis central bankers'speeches institutions, namely, bdc, ndb, ceda and bsb, with respect to alignment of their respective mandates to strategic sectors. furthermore, a sustained focus on the development of the domestic capital market, underpinned by the right governance architecture and macroeconomic stability, is critical to internally orientate and tap into resources accumulated by pension funds, annuity providers and other institutional funds, the bulk of which are currently invested offshore in search of yield. as at february 2021, pension funds assets amounted to p106. 1 billion, of which p68. 3 billion or 64. 4 percent of the total were invested offshore. as at that date, this was more than the official foreign exchange reserves at p55. 8 billion. in this regard, the “ reset agenda ” needs to continue to prioritise sufficient and diversified mobilisation of financial resources by government for funding infrastructure and cost - effective and, increasingly digital provision of services while ensuring budget sustainability and rebuilding of fiscal and external buffers which, hitherto, anchored the country ’ s economic resilience. in this regard, the bank is fully aligned to, and agrees with the multi - pronged financing strategy adopted by the ministry of finance and economic development for financing national development plan 11. given the prevailing low interest rates environment and relatively low public debt matrices, it is indeed propitious to access global credit markets for funding growth - friendly and capacity building infrastructure, health eco - systems and rebuilding of the external buffers in readiness for the next negative external shocks including droughts. fourth, with respect to the vision 2036 aspirations, notably to achieve high - income status and inclusive diversified growth, a sustained focus on structural and economic transformation remains necessary. this requires harnessing opportunities offered by ict as a singular sectoral growth area as well as an effective and influencer of economic activity. the country will need to continue to upscale investment on digital infrastructure to improve availability and affordability of it equipment, internet and development of a critical mass of digital skills. at this juncture, i would like to ask the chief financial officer, mr daniel loeto to kickstart the economic briefing with a presentation on financial performance and highlights of the bank ’ s

2015 as the effect of the fall in crude oil prices dissipates, and is expected to reach around 2 percent in or around fiscal 2015. subsequently, for fiscal 2016 the year - on - year rate of increase in the cpi ( excluding fresh food ) is projected to reach 2. 2 percent as the economy continues to grow above the potential growth rate and the output gap improves in positive territory. since crude oil prices have recently been fluctuating substantially, the 2 percent inflation rate, depending on developments in crude oil prices, may be achieved somewhat sooner or later than envisaged. that said, however, let me reiterate that in our view, what matters is the underlying trend in inflation. going forward, the bank will continue with qqe, aiming to achieve the price stability target of 2 percent, as long as it is necessary for maintaining that target in a stable manner. of course, the bank will make adjustments as necessary to achieve the price stability target at the earliest possible time, if there are changes in the underlying trend in inflation. regional economies after the 2 percent target has been achieved as explained, the bank believes that the price stability target of 2 percent can be achieved through continuing with qqe. on the other hand, some have argued that qqe may lead only to higher inflation, which would undermine people ’ s standard of living. therefore, let me talk about why it is necessary to aim at 2 percent. under deflation, the real value of cash and deposits increases simply by holding them. therefore, hoarding cash and deposits becomes a better investment than actual investment. in japan, as a result of protracted deflation, firms ’ investment in business facilities and in research and development remained restrained, which deprived the economy of potential growth and led to a loss of vitality. such subdued business fixed investment is one reason that japan ’ s potential growth rate has been on a declining trend ( chart 13 ). however, in an economy in which prices rise steadily at a rate of 2 percent, the situation changes drastically. that is, since the real value of cash and deposits will erode over time, firms need to make effective use of their funds in hand in the form of investing in business facilities and in research and development as well as recruiting and developing human resources. proactive behavior such as venturing into new business areas will also increase. such developments will enhance firms ’ competitiveness and productivity, and consequently result in restoring the vitality of japan