as a result, higher energy and material costs are showing up in the prices of a growing list of goods and services. so even if there is some relief at the gas pumps, price pressures remain high and continue to broaden. in august, the prices of more than three - quarters of the goods and services that make up the cpi were rising faster than 3 % ( chart 4 ). chart 4 : inflationary pressures remain broad - based share of cpi components that are growing % above 3 % sources : statistics canada and bank of canada calculations above 5 % above 7 % last observation : august 2022 simply put, domestic inflationary pressures have yet to ease. that doesn ’ t mean higher interest rates are not working, but it will take time. by raising interest rates, we are making it more expensive for households and businesses to borrow and therefore to spend. in five steps since march, we have raised the overnight policy rate from 0. 25 % to 3. 25 % — one of the steepest and fastest tightening cycles we ’ ve ever conducted. and we are starting to see some effect. some interest - - 6rate - sensitive sectors of the economy have begun to cool. the housing market had overheated to unsustainable levels early in the pandemic due to low supply, increased demand for larger homes and low mortgage rates. with higher rates now constraining borrowing, the sector has cooled. but monetary policy takes time to work its way through the whole economy. households or businesses making a big purchase or investment — one that requires a loan — are feeling the impact. it takes longer for monetary policy to bring down price growth in other goods and services — especially services — because they aren ’ t directly tied to borrowing. instead, they adjust over time as overall spending moderates. what we ’ re watching in her september economic progress report, senior deputy governor carolyn rogers outlined what the bank is monitoring to guide our decisions in the months ahead. she explained that we will focus on how monetary policy is working to slow demand, how supply challenges are resolving, and, most importantly, how both inflation and inflation expectations are responding. i want to drill down on these latter two elements : measures of core, or underlying, inflation and measures of inflation expectations. these are critical guideposts for us as we seek to bring total cpi inflation all the way back to the 2 % target. core inflation as we look for a more fundamental turning point in inflation, measures of core inflation are

zeti akhtar aziz : why asia? asia ’ s prospects and how emerging markets shall shape the region ’ s future keynote address by dr zeti akhtar aziz, governor of the central bank of malaysia, at the management association of the philippines ( map ) luncheon seminar : “ why asia? asia ’ s prospects and how emerging markets shall shape the region ’ s future ”, manila, 2 may 2012. * * * it is my great pleasure to be here in manila to give this luncheon address. let me thank the management association of the philippines for the invitation to speak here today on asia ’ s future prospects ; why asia and how will emerging asia shape the region. opportunities in asia are now boundless. key in generating these opportunities are the economic flexibility of the region, the diverse nature of the region that has generated the potential to leverage on regional complementarities, and the demographic advantages of the region. these opportunities are also being enhanced by the significant payoffs gained from a decade of reforms, and the intensification of regional economic and financial integration that is now taking place and resulting in a more connected and cohesive region. despite being at different stages of development and operating in different economic systems, the benefits are also increasingly being more widely shared. finally, the region has also benefited immensely from the resilience built, and more recently, from having the policy flexibility to minimise to the effects of the recent global financial crisis. let me elaborate on these prevailing trends that are shaping emerging asia ’ s future. asia ’ s growth prospect is very much underpinned by the transformative momentum that has, for a number of decades, brought emerging asia to its current growth trajectory. the economic flexibility of emerging asia has enabled most of the economies in the region to adjust to the changing conditions and to shift resources to new areas of comparative advantage. emerging asia has demonstrated that it has not been weighed down by structural rigidities and impediments. capital and labour mobility has been strengthened by the economic and financial reforms that have resulted in the shift towards greater market orientation and liberalisation. changing economic structures and transformation within specific sectors, including the participation in cross border production chains, have been gaining significance. emerging asia has also been able to leverage on technology to push beyond prevailing frontiers. firms in emerging asia are also increasingly innovating and allocating resources to research and development, and becoming leading players in their various respective industries. an equally important economic shift that is taking place