targets – namely a negative phillips curve coefficient and a viable transmission mechanism – a sustained period of disinflation, if this is possible at all, can only emerge if monetary policy facilitates it. however, present day central banks have little scope to show forbearance when price stability is at risk. tolerating inflation destabilisation is not an option for them. modern central banks have two strong antidotes at their disposal to avoid this. first, their robust monetary policy frameworks prescribe the delivery of price stability within a policy - relevant horizon. i stress this qualification as it is a key element. to be sure, the time horizon for central banks to normalise inflation cannot be preset, by statute, unconditionally. indeed, in a vast part of the world where central banks are assigned numerical objectives for price stability the stabilisation horizon is not defined in rigid calendar - time form, but is left rather flexible for central banks to determine according to the nature of shocks that cause inflation to deviate from target. at the same time, a central bank which allows itself too much discretion over the time horizon when inflation should return to its target would de facto be claiming authority over redefining its monetary policy objective. this would be manifestly inappropriate, probably illegitimate. central banks know that if they lack a verifiable commitment to control inflation over a horizon for which the public retains some visibility, this can result in inflation expectations becoming “ unanchored ”. to go back to a point i made earlier, it is in this spirit that a central bank may choose to react vigorously to supply - side shocks so that it can restore the public ’ s faith in the effectiveness of monetary policy. second, and as a corollary, present day central banks do not indulge in the self - absolving notion that monetary policy has reached its limits and that further actions would be fruitless. historically this sort of pessimism about the potency of monetary policy has led to policy paralysis. to make matters worse, this idea was often combined in central banking circles with the conviction that those authorities with control over income, structural and fiscal policies should be principally responsible for reviving the economy and countering deflation risks. in both the 1930s and 1970s as well as in the early 2000s in japan, these counterproductive beliefs led to policy inaction which ultimately resulted in enormous harm being inflicted on their economies. today ’ s central banks have learned the

##bed of innovation. ultimately, the greatest asset that barclays has is its staff. most of them are unsung heroes in the backrooms, cleaning crews, far - flung branches, etc. all dedicate themselves with professionalism, integrity, and a spirit of service. this is what all our institutions, including those in our banking sector, need to see and adopt. i applaud barclays for its excellent staff and anchoring its business on a set of strong values, without which it would have been impossible to sustain growth and stability over a century. before i finish, i would be remiss if i did not mention that the central bank of kenya ( cbk ) will this year mark its 50th anniversary. at this juncture, the central bank is at a point of reflection on its past successes and challenges in delivering on its key mandates including promoting the stability, access, efficiency and integrity of the banking sector. cbk will continue to take steps to further strengthen prudential regulation and supervision, with a view to supporting the continued safety, soundness and growth of the banking sector. this is in line with kenya ’ s aspirations under vision 2030 of promoting a sound, safe and inclusive financial system to progress towards a regional financial services hub. as i close, i see barclays standing with two roads diverging in front of it, and the last verse of robert frost ’ s poem “ the road not taken ” comes to mind : i shall be telling this with a sigh somewhere ages and ages hence : two roads diverged in a wood, and i – i took the one less traveled by, and that has made all the difference. i wish once again to congratulate barclays on this milestone and look forward to many more successful years ahead. i wish you fruitful centennial celebrations. thank you! bis central bankers ’ speeches