maximize these opportunities within the framework of the regulations that we have so far put together. closing ladies and gentlemen of the rural banking sector, in an environment that is rapidly evolving, adaptability is key. but adapting to change does not necessarily mean changing your core and losing your relevance. in fact, as the push for financial inclusion continues to intensify, the role of rural banks today is even greater than it was then. you remain to be a key channel to deliver financial services to the countryside especially the unserved and underserved markets. embrace this mission and role which you have been given more than 6 decades ago and nurture it by evolving and adapting to the demands of the times. on our part, we will remain your partner in this important task. this partnership is integral as we work on our shared goal of a stronger, more competitive and more inclusive rural banking sector that can make a positive difference on the lives of the filipino people. i wish everyone a fruitful convention. thank you and good day. bis central bankers ’ speeches

home and abroad – were set at low levels. at the same time, this amplified the cyclical upturn in norway. towards the end of the decade, during the financial crisis, the interest rate was reduced sharply and to record - low levels. the decision to lower interest rates was undoubtedly not a difficult decision to make at the time. a persistently low interest rate, on the other hand, can pose a challenge to financial stability in an economy where there is a strong willingness to borrow and property prices are rising. despite challenges met over the past decade, inflation has been fairly stable and close to the target, which shows that monetary policy has been effective. compared with the 1980s, for example, inflation has been considerably lower and growth in the mainland economy has been markedly higher. there has been no conflict between low inflation and high economic growth, as previously claimed by economists. bis central bankers ’ speeches the guidelines and the financial crisis the financial crisis in 2008 put our economic policy guidelines to a severe test. the interest rate cuts that followed from the inflation target led to a reduction in households ’ annual interest expenses of around nok 40 billion, or around 4 per cent of their disposable income. the krone depreciated and acted as a buffer. the burden on leveraged companies was eased and investment projects became profitable in an environment of lower interest rates. altogether, monetary policy made a substantial contribution to norway ’ s resilience to the crisis. bis central bankers ’ speeches well anchored inflation expectations made monetary policy effective – the reduction in norges bank ’ s key policy rate was perceived as a decline in the real interest rate. other central banks experienced that there was little scope for reducing the real interest rate to a sufficiently low level. this downturn contrasts sharply with the downturn in the 1980s when the interest rate had to be maintained at a high level to defend the krone exchange rate. at that time, there was a lack of confidence in both monetary policy and fiscal policy. the costs were substantial. unemployment increased, in line with that experienced in some european countries today. when the financial crisis reached norway in 2008, we were in a much better position. a long period of substantial petroleum revenues – and a clear savings plan – had provided us with considerable leeway. as a result, fiscal policy could also be used effectively during the downturn. the guidelines stipulate that the government budget deficit shall over time be equivalent to 4 per cent of the capital in the government