trends, scenarios, risks, events and policy response alternatives to be addressed or considered. the fifth bucket is the requirement for clear articulation of prospective developments ( for example, influences on price developments ) that monetary policy need to pursue and the instruments to be deployed within the policy horizon, to entrench public expectations of low, predictable, and sustainable inflation in the medium term. in this regard, consistent with its primary mandate, the bank contributes to the maintenance of conducive monetary, credit and financial environment to foster an orderly, durable and balanced economic development and, more specifically, supportive of broader macroeconomic stability. factors affecting monetary policy formulation in 2022 honourable minister, i will shortly outline the policy framework and some significant reforms to monetary operations aligned to aspects of these prefacing statements. however, before i do that, l wish to briefly expand on some of the themes i just highlighted as they are critical to the approach to monetary policy formulation and implementation and, also, the rationale and motivation for the operational reforms i will announce today. first, is that the progressive response to the covid - 19 pandemic appears to have transitioned, or is transitioning, from curtailment of economic activity to growth areas that address the endemic disease situation, for our purposes, health and wellness economics, sectoral realignments, and digitisation, among others ; hence the prognosis for positive economic growth prospects, across the globe, going forward. second, however, are mainly transitional supply - driven, and commodity price increases ( some associated with intractable geopolitical tensions ) that translate into high inflation. for several countries, inflation has multiplied by factors of two to three within a relatively short space of time ; thereby, threatening macroeconomic stability and adversely impacting standards of living. these “ cost - push ” factors, volatile markets and nascent recovery demand conditions present real challenge for policy making and forward guidance. therefore, third, a quicker transition to monetary policy tightening and unwinding of liquidity support measures in many countries, even as fiscal policy remains expansionary, a manifestation of policy rotation ; and by the way, this is not necessarily a policy misalignment between fiscal and monetary policies. for emerging markets and developing economies, this policy normalisation, especially by major central banks in developed markets, could lead to undesirable reversal of capital flows, deterioration of debt metrics and foreign exchange constraints and related currency depreciation ; in this regard,

for monetary policy action or posture. conclusion as i conclude, honourable minister and distinguished ladies and gentlemen, i wish to underscore that success in achieving price and financial stability, to which the bank remains fully committed, calls for the cooperation of all key players in the economy. this time around, let me single out banks as key transmitters of monetary policy impulse and with responsibility for ensuring smooth implementation of the monetary operations reforms i have just announced. in addition, in a period of elevated inflation, all other stakeholders, are expected to moderate their inflation expectations in deference to the regular communication by the bank on inflation profile. market analysts and the media would be particularly helpful in this regard. to summarise, while i have said so many words in the past half hour or so, the overriding message is that the bank stands ready, as always, to play its part in contributing to monetary and financial conditions necessary for sustainable economic growth and welfare enhancement. honourable minister, distinguished ladies and gentlemen, i thank you for your kind attention.