may improve more than expected, and both the global economy and foreign trade may recover more strongly than projected. furthermore, there may be stronger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. on the downside, concerns remain relating to a stronger or more protracted than expected negative feedback loop between the real economy and the financial sector, renewed increases in oil and other commodity prices, the intensification of protectionist pressures and the possibility of a disorderly correction of global imbalances. with regard to price developments, euro area annual hicp inflation increased further in january 2010 to stand at 1. 0 %, according to eurostat ’ s flash estimate, after 0. 9 % in december 2009. inflation is expected to be around 1 % in the near term and to remain moderate over the policy - relevant horizon. in line with a slow recovery in demand in the euro area and elsewhere, overall price, cost and wage developments are expected to stay subdued. in this context, it is important to emphasise that inflation expectations over the medium to longer term remain firmly anchored in line with the governing council ’ s aim of keeping inflation rates below, but close to, 2 % over the medium term. risks to this outlook remain broadly balanced. they relate, in particular, to the further development of economic activity and the evolution of commodity prices. furthermore, increases in indirect taxation and administered prices may be stronger than currently expected, owing to the need for fiscal consolidation in the coming years. turning to the monetary analysis, the annual growth rate of m3 remained negative in december 2009, standing at – 0. 2 %. in the same period, annual growth in loans to the private sector was zero. these data continue to support our assessment of a moderate underlying pace of monetary expansion and low inflationary pressures over the medium term. actual monetary developments are likely to be weaker than the underlying pace of monetary expansion, owing to the downward impact of the rather steep yield curve. looking ahead, m3 and credit growth is likely to remain weak for some time to come. the prevailing interest rate constellation continues to have a strong influence on both the level and composition of annual m3 growth. on the one hand, the low rates of remuneration on short - term bank deposits foster the allocation of funds away from m3 and into longer - term deposits and securities. on the other hand, the narrow spreads between the interest rates paid on different short - term deposits imply a low opportunity cost of holding

scams has exposed consumers to increasingly sophisticated fraud schemes that can be difficult to detect and prevent. this is why individual firms must be proactive, ensuring they incorporate security by design when developing new payment solutions. innovation is required to keep pace with criminal elements seeking to disrupt the payments ecosystem, thereby undermining public trust in the broader financial system. the fight against fraud is not limited to any individual firm - the entire ecosystem, including both financial and non - financial stakeholders, must work together to meet the challenge of evolving fraud techniques and typologies. this is why – at the central bank - we have been engaging with a number of large tech firms since the start of the year, including google, encouraging them to do more to ensure they are not facilitating consumer harm. i am pleased that progress has been made in this regard and welcome google's announcement last week that they will introduce a verification process for financial services advertisers. an effective financial services verification policy is a key disruptive tool in the fight against online financial scams. for that reason, in particular, i want to welcome the establishment of the anti - fraud forum under the strategy. this forum will seek to enhance the formal cooperation between the financial sector, telecoms, and social media companies, whose networks and platforms are often utilised to propagate fraudulent activity. let me conclude. as minister chambers outlined, the overarching objective of the national payments strategy is to build and enhance public trust in the payment system, by ensuring that it works in the best interests of all consumers and businesses. ultimately, the success of the national payments strategy will be largely determined by the organisations in attendance today, and the degree to which we all engage in and support this multi - year programme of work. the department of finance has set out the roadmap for the future of the irish payments ecosystem, and it is now up to us, as a collective, to put our words into action. i would like to thank you all again for attending the event today. we have arranged a small reception which i hope some of you will be able to stay to attend. 2 / 3 bis - central bankers'speeches thank you. 3 / 3 bis - central bankers'speeches