the monetary stability sector will also implement more streamlined cash management operations system this year, among others. at the same time, we are reorganizing our supervision and examination sector to adopt to a rapidly changing environment and implement reforms that will make our banking system stronger, more efficient, at par with international standards, and more responsive to the needs of our economy and our people. the resource management sector, on the other hand, will ensure that bspers are properly equipped with the appropriate skills and expertise required by our institution. 2008 also marks our shift to a more meaningful appraisal system in accordance with our merit system for salary adjustments and promotions. even the way we estimate and produce our currency requirements at the security plant complex is undergoing review to make it more efficient and responsive to the needs of the economy. indeed, change is happening around us. now, more than ever, we need to be open to change, to be flexible to be dynamic to achieve the goals we have set under our medium term development program. nevertheless, even as we welcome change, we should, at all times, remain faithful to the five core values of our institution, which are : patriotism, integrity, excellence, dynamism and solidarity. these core values should serve as our enduring and lasting guides as we deal with the opportunities and challenges ahead of us. ladies and gentlemen of the bangko sentral ng pilipinas. by tradition, this is the time of year when we commit to do better through what we call new year ’ s resolution. as our joint new year ’ s resolution therefore, let us commit to be guided by our core values, at all times, wherever we may be. muli sa ngalan po ng ating monetary board at nang aking pamilya kasama na ang aking maybahay na si elma at tatlong anak, ako po ay nagpapasalamat sa inyong lahat at humihiling na sana ay maging masaya, malusog, masagana, at matagumpay ang 2008 para sa ating lahat, at sa ating mga kababayan! mabuhay ang bangko sentral! mabuhay ang pilipinas!

for a long time and that does have implications for the financial system and for these groups. going back to the previous question, if we did not pursue these policies then the medium - term scenario would be worse. if inflation gets worse, if it gets lower, if it gets locked in at a low rate, then the prospects for interest rates recovering in the future would be less. a temporary phase, which we are in, of low interest rates makes it more likely that we will return to a situation where savers get a better deal. it is a temporary phase, but there is no doubt that there are consequences for those looking to earn income. this is not a situation that is ideal. but we are still in the legacy of the crisis and i think this policy path is correct. we also always say that, in terms of the speed of the recovery, european fiscal policymakers can do more. those countries which have fiscal space can do more to accelerate the recovery. some have said that the continued low interest rates and quantitative easing have had benefits for large investment funds, and for the area of property investments in particular these benefits come at the expense of individual prospective house buyers, or indeed people who end up renting. it ’ s become an issue here as it has in other parts of europe. how would you respond to that? the low interest rate environment has many benefits. it helps to create jobs. for those with a 1 / 4 bis central bankers'speeches mortgage, it reduces the cost of maintaining that mortgage. for highly indebted governments there is a saving in terms of debt service payments. but there is no doubt about it : it does mean that it raises the purchase price of homes. it raises the purchase price of commercial property, so those, as you say, with a lot of financial firepower, global institutional investors and so on, will find it easier to deal with that. and as you say, there are knock - on effects in the rental market, absolutely. we have a strategy review this year, where i think we have always been alive to these concerns. revisiting how we think about housing in how we do monetary policy is part of that review. for monetary policy, if it has these consequences, we need what we call macroprudential policy to go hand - in - hand. so here in ireland, as you know, the central bank of ireland has mortgage rules, and it is a very difficult situation. if someone says that in