greater supply - side flexibility - that is increasingly being followed by uk regional and national authorities. and it's the path being followed here in wales by the national assembly under first minister rhodri morgan. it is the path that is being followed by the wda and its subsidiary finance wales, as well as elwa. if we know at the bank about plant closures and job losses, we know, too, about neds ( the welsh national economic development strategy ) and we know about the new activity, creating new jobs, including, for example, technium. i said a moment ago that some of the current micro - economic problems are inevitable - a normal and necessary facet of economic progress. but the pressures we currently face go well beyond that. the effects of bse and then of foot and mouth disease on agriculture, and the impact on the rural economy more generally, have been wholly abnormal. and the pressures on the wider economy have recently been hugely aggravated by the international economic environment - first, by the persistent strength of sterling against the euro ; then, by the global economic slowdown - including the dramatic contraction of activity in the previously booming high - tech sectors, and most recently by the vicious terrorist attacks in the united states. with the best will in the world, there is nothing that we can do - certainly not through our domestic monetary policy - that goes to the causes of these problems. that's obviously true in the case of the problems in agriculture. many people suppose that interest rates would have a predictable effect on exchange rates, but in fact it's not as simple as that. many other factors influence exchange rates which can respond perversely to interest rate changes even for quite long periods of time. despite the 4 % cut in the us rates this year the dollar is still stronger against the euro - where rates have fallen by only 1 % - than before the interest rate cuts started. and sterling, too, rose against the euro even though we cut interest rates earlier, and by more, than the ecb. the conundrum in fact has been the persistent relative weakness of the euro, since its introduction, and i very much welcome its modest recovery since the summer. but on top of this exchange rate effect, external demand for goods and services produced in this country has been adversely affected by the unusual simultaneous slowdown in the world's three largest currency areas - the us, the eurozone and japan - that we have seen this year.

of which, in a few moments from now, we will be showcasing the concept design crafted by our very own architects in the bsp currency management sector, to give you a glimpse of the complex that we plan to establish just outside this venue. consistent with the spirit of the new clark city, the concept envisions a facility that will serve as a leading benchmark for a smart, green, modern complex, not just within the country, but on the global scale as well. we also envision an industrial facility that will employ state - of - the - art technologies that will foster high - yield production systems, efficient workflows, while maintaining a low energy footprint. likewise, with the ample area being considered, the facility will feature expansive greenery and natural living spaces – which are short supply in metro manila – to exemplify the bsp ’ s continuing commitment to health, well - being, and environmental preservation. so allow me to end my remarks by calling your attention to the screen in front as we proudly unveil the concept design of the new bsp security plant complex which will rise in the new clark city. mabuhay po tayong lahat. mabuhay ang bansang pilipinas. 1 “ paspas capas ” is the municipality ’ s motto / slogan. 2 / 2 bis central bankers'speeches