among others, to those who are more vulnerable, even if it means accruing less to the bottom - line. this is the very essence of why banking is imbued with public interest. in this connection, the bangko sentral is preparing to release a consumer protection framework ( cpf ) that is applicable to its covered institutions. built upon the pillars of consumer empowerment, market conduct and collective responsibility, the governance standards put into practice by each bsp - covered institution will play a central role within the cpf. the introduction of the cpf is a milestone for us. consumer protection is now part of the core practices for which the bsp exercises supervision and regulation. in this initiative, i expect that baiphil will again be one of our key partners. what lies ahead : a challenge to baiphil ladies and gentlemen, we can always talk of governance at length. the challenge, however, is not in extolling the virtues of good corporate governance. rather, it is what happens after that is the key challenge. if a “ culture of good governance ” is meant to define our set of values, beliefs and practices on governance, then we are clearly along the proper path. this cannot be delineating the shades of grey between “ acceptable ” and “ unacceptable ”. when it involves the interests of several stakeholders, we need to be categorical about what is “ right ” and “ wrong ”. the challenge is measuring how far we moved forward. i am not referring to specific instances of compliance or breaches. what we want to achieve is having that comfort that values, beliefs and practices are fully in place and updated even when no one is looking. certainly, it is this last part that is at the core of the issue. baiphil has always been the advocate of training and capacity building. the industry benefits from your course offerings and capacity building programs. but baiphil ’ s mandate cannot and should not stop when the courses end or when we choose to mount a new training. is baiphil up to this critical task? abangan! actually, given your track record, i trust that baiphil will find new and creative solutions to meet these challenges. finally, i thank and commend baiphil for its continuing commitment to support the bangko sentral ’ s financial education program for parents and teachers in our public schools. this is a parallel program that complements the lessons on saving, money management and entrepreneurship being taught in

this were to turn out to be the case, monetary policy would have the flexibility to respond provided the inflation outlook remained benign. conclusion to summarise, the challenge that we australians face is to make the best of the fundamental changes that are taking place in the global economy. as a country rich in natural resources, bis central bankers ’ speeches we are well placed to benefit from this change. but if we are to take advantage of this opportunity, the structure of the economy must continue to evolve. labour and capital will continue to shift to the resources sector. industries affected by the high exchange rate will need to find ways of moving up the valued - added chain. and parts of the service sector will need to continue their adjustment to the changes in household spending and borrowing. these adjustments are difficult, but if they are not allowed to occur, as a nation we will have given up the potential benefits that the changes in the world economy are making possible. public policy can help in the adjustment process by promoting flexibility in the economy and by reducing some of the costs of change for individuals and communities. it can also help manage some of the new risks arising from these global developments. monetary policy can help the adjustment by keeping inflation under control and maintaining stability in the overall economy. our judgement is that the current setting of monetary policy is consistent with this, with the board keeping the cash rate unchanged at 4. 25 per cent at its meeting yesterday. i would like to thank you very much for your time this morning, and i am happy to answer questions. bis central bankers ’ speeches