committed to delivering a world - class regulatory framework. that means one that fully supports the soundness and efficiency of the new zealand financial system, and is lean, easy to use and as cost - effective as possible. bis central bankers ’ speeches the non - bank sector had serious issues earlier on which led to a strengthening of regulation in that sector. however, the banking sector came through the global financial crisis in very good shape by international standards, which is a testament to the industry and to the regulatory environment. it is important though that we work to continuously improve the regulatory framework. we look forward to working with you all towards that end. thank you. bis central bankers ’ speeches

- 05 jan - 05 source : turkstat, cbrt. distinguished guests, inflation expectations are determinant on inflation realizations in view of being the basis for both pricing behavior and wage adjustments. therefore the developments in these expectations play an important role in central bank analyses and evaluations. in this framework, analyzing the inflation expectations for the next 12 months and 24 months as of april, the following points emerge : though consumer inflation expectations for the next twelve months have declined, the rate of decline has been slowing down significantly since february and expectations have to some extent been following a horizontal course. the fact that long - term consumer expectations relating to the next 12 and 24 months are slightly above the targets is interpreted as a development that requires prudence with respect to the falling inflation process. nevertheless, the course of longer - term expectations at low levels is an encouraging development as regards the success of inflation targeting ( graph 9 ). graph 9. cpi expectations regarding next 12 and 24 month periods ( annual percentage change ) next 12 - month next 24 - month apr - 06 feb - 06 dec - 05 oct - 05 aug - 05 jun - 05 apr - 05 feb - 05 dec - 04 source : cbrt. supply and demand developments supply - demand balance distinguished guests, at this point, i would like to touch on our evaluations relating to supply and demand developments in the light of national income data released at the end of march. in the last quarter of 2005, gross domestic product ( gdp ) increased by 9. 5 percent compared to the same period of the previous year. hence, gdp growth was realized as 7. 4 percent throughout 2005. the ongoing structural reform process along with the implementation of tight monetary and fiscal policies have enabled the strengthening of economic fundamentals, characterized as a decline in the risk premium, reduction in real interest rates and appreciation of the new turkish lira ( ytl ) against foreign currencies, which have been the main determinants of rapid growth in the total domestic demand in 2005. within this framework, total final domestic demand increased by the high rate of 19. 1 percent in the last quarter of 2005 compared to the same period of the previous year. analyzing by quarterly periods, seasonally adjusted data also point to an ongoing rapid growth tendency in total final domestic demand in the last quarter of 2005 ( graph 10 ). graph 10. gdp and total final domestic demand ( seasonally adjusted ) 03 - i 03 - ii 03 - iii 03 - iv 04 - i 04