emmanuel tumusiime - mutebile : plans for a common platform integrating east african financial markets speech by mr emmanuel tumusiime - mutebile, governor of the bank of uganda, at the opening of the stakeholders ’ workshop on developing the 5 - year financial markets development plan, kampala, 15 august 2007. * * * ladies and gentlemen, i would like to thank you for finding time in your busy schedules to participate in this one day ’ s stakeholders workshop. earlier this year the 10th eac meeting of the monetary affairs committee ( mac ) approved a financial markets development framework which includes involving stakeholders in the development of a 5 - year financial markets development plan in all the entire member states of the east african community. the harmonized regional plans are intended to form a common platform for integration of the east african financial markets. the bank of uganda was requested to take the lead and co - ordinate these efforts and the executive director operations chairs the financial markets development committee for the region. the original three east african countries have completed situational analysis for their financial markets in line with agreed parameters and have identified issues to be addressed in the various fields such as banking and capital markets reforms, the pension sector reforms, strategies for financial markets development in the areas of rural finance, leasing and additional financial products which should facilitate improved access to finance. this financial sector development plan represents a new approach to trying to address the current limitations in the ugandan financial markets. the small size of the ugandan financial sector is an obstacle to the development of financial systems, resulting in systems that are in place tending to be limited in scope, more expensive and of poor quality. the ugandan financial market has scope to become larger because the economy is fully liberalized and open to the flow of capital to and from foreign markets, participation of foreign financial intermediaries and now the integration efforts with the east african sister countries. you, as stakeholders, must join hands with the bank of uganda not only to help in the integration process of the east african financial markets but also to do your part in developing deepening and widening the financial markets as a way of accelerating economic development in uganda and the east african region as a whole. there are several challenges that have to be confronted : • as capital flows freely in and out of the country, the challenge that arises is the maintenance of financial markets stability. • increased diversity of financial services and products requires a financially literate consumers who can make informed choices. the consumers ought to

- to - fail, the uk is also on track to ensure greater risk - sharing between its creditors and debtors. it is estimated that on average around a fifth of variation in regional personal income relative to the national average is stabilised by central government transfers. estimates reported in melitz and zumer ( 2002 ), “ regional redistribution and stabilization by the center in canada, france, the uk and the us : a reassessment and new tests ”. journal of public economic, 86, pp. 263 – 286. the geographical share of north sea oil revenues, estimated by the scottish government, was 84. 2 % in 2012 – 3, down from 92. 9 % in 2008 – 9. in 2012 – 3, scotland ’ s per capita share of north sea oil revenues was estimated by the scottish government to be 8. 2 %. see tables 4. 4 and 4. 5 of scottish government ( 2014 ), “ government expenditure and revenue, scotland 2012 - 3 ”. exchange rate effects alone led to an improvement of £573 billion to the uk ’ s net international investment position between 2006 and 2008, estimated in whittard ( 2012 ), “ the uk ’ s external balance sheet – the international investment position ( iip ) ”, ons, march. see carney ( 2014 ), speech at the 146th annual trades union congress, liverpool. bis central bankers ’ speeches our remit recognises that the inflation rate may, on occasion, depart from the target and that attempts to keep it at the target may cause undesirable volatility in output. that flexibility and focus meant that the bank ’ s monetary policy committee ( mpc ) could provide additional stimulus through historically low interest rates, large scale asset purchases and monetary policy guidance even when inflation was temporarily above target. inflation has recently dropped sharply to 0. 5 % – equalling its lowest rate on record. so next month i will write the first open letter from a bank of england governor to a chancellor explaining why the inflation rate is too low and what we are going to do about it. the why is relatively straightforward. the majority of the weakness is caused by sharp falls in commodity prices, most notably oil, which has suffered its third largest fall in the past half century. lower energy and food prices are unambiguously positive for the uk. temporarily low inflation will boost real take - home pay and help household finances. commodity prices do not explain wholly why inflation is so low