nor the consumers. but under our disclosure - based philosophy, it is important that consumers understand exactly what they are buying. so mas has proposed guidelines for full and meaningful disclosure of the risks involved, including reasonable illustrations of potential benefits, and clear explanations of any limits on returns. we have also required banks distributing such products to treat these as investment products rather than deposits which can be sold over - the - counter by bank tellers. these guidelines are currently under consultation. mas will monitor how the market develops to see if further action is required. going forward, we will produce educational materials to help consumers understand these products better. vi. conclusion we stand on the threshold of a cyclical economic recovery amid profound structural changes to the global economy. for the first time, emerging economic powers, china and india, are thrusting themselves into the global economy. they are forcing a major reordering of the economic landscape, whether in terms of new competition for investments and exports, or new markets for products. despite all the problems and complexities that asia faces, this is the most dynamic region in the world. we need to continue to restructure the singapore economy and move up the value chain of economic activities. singapore will continue its role as an important financial centre despite the changing environment and challenges posed by china and india, and must find ways to benefit from these developments. financial services will continue to be an area in which we have a competitive advantage. the economic recovery presents great growth potential. we need to position ourselves to capitalise on the opportunities. market players must seek out and seize the business opportunities as they arise. they must continually reassess their strategies to remain competitive in this changing world, and more importantly, implement the good strategies vigorously to create new opportunities for themselves. mas will continue to ensure the integrity of the financial sector, so that singapore remains an attractive regional hub for financial sector activities. it will also adapt and respond to market developments to facilitate a more competitive operating environment. together, mas and the financial industry will navigate the winds of economic change and strengthen our position as a premier international financial centre.

to return to the 2 per cent target by the first half of 2007. the same is true of core inflation which, in the closing months of 2005, was at 1. 6 per cent. with the canadian economy operating at capacity and expected to grow at potential through the projection period, on 24 january we raised our policy interest rate by 25 basis points, bringing it to 3 1 / 2 per cent. and we indicated that, in line with our base - case projection and our current assessment of risks, some modest further increase in the policy interest rate would be needed to keep aggregate supply and demand in balance and inflation on target over the medium term. it is important to keep in mind that there are, as always, both upside and downside risks to our projections. for 2006, these risks appear to be balanced. but through 2007 and beyond, the risks are tilted to the downside because, as i have said, the unwinding of global imbalances could involve a slowdown in world economic activity. conclusion let me conclude. global imbalances are a global problem, and their resolution requires a global effort. every country has a role to play in this effort. and while the specific policy measures will vary from country to country, there are common principles that policy - makers everywhere should follow. these include the adoption of appropriate fiscal policies, the promotion of well - functioning labour and product markets, the provision of a well - functioning social safety net, policies that allow for an efficient and sound financial system, and a monetary policy focused on low, stable, and predictable inflation. we also need a commitment by all countries to a renewed international monetary order and a willingness to play by the rules of the game. this does not represent a new prescription for global economic health. but the need for urgent action has increased. imbalances are persisting, and if they aren't resolved in an orderly way, we face the threat of great disruption. that is particularly true for countries with very open economies such as canada and barbados. an orderly resolution of imbalances is in all of our interests.