3 / 7 bis central bankers'speeches risks. third, attract green funds and asset managers with a sustainability focus. i am pleased to announce that mas will soon be placing us $ 2 billion of our funds with asset managers that are committed to deepen green finance activities out of singapore. mas announced the programme just over a year ago. through a highly competitive process, we have now identified a select group of asset managers with a strong green focus. they have a good track record of sustainability investing, robust stewardship policies, and a strong understanding of how to deliver a portfolio that has a deep environmental footprint while still delivering good returns. the selected asset managers will designate singapore as their sustainability hub in the asia pacific. their singapore offices will lead asia - focused sustainability research and spearhead esg engagements in the region. many also have plans for designing training curriculum in sustainable finance to help build relevant skills among the broader investor community. these asset managers will be valuable partners to mas and the investor community in the sustainability journey. improve consistency and transparency of esg reporting and disclosures our second area of focus is to improve the consistency and transparency of esg reporting and disclosures. the biggest challenge to sustainability investing is a lack of clear, agreed definitions of what is green and what is sustainable. despite good improvements in esg disclosures, there are varying standards and inconsistent definitions. esg scores of companies vary due to differences in methodologies used by rating agencies, and these methodologies are often opaque to the investor. the lack of consistency and transparency affects investors ’ ability to monitor progress in emissions reduction or measure outcomes in sustainability. we are tackling this issue through four strategies. first, provide guidance for asset managers to assess, monitor, mitigate and disclose environmental risks. mas recently issued to all financial institutions guidelines on environmental risk management incorporating best practices drawn from around the world. in fact, mas co - created these guidelines with imas, actively engaging asset managers to better understand industry practices. i am pleased that imas will be conducting workshops to strengthen capabilities in this area. 4 / 7 bis central bankers'speeches second, develop taxonomy to identify and classify activities that can be considered green or in transition towards green. an industry - led green finance task force has issued a consultation paper setting out a green taxonomy for singapore - based financial institutions. the taxonomy references international best practices and adapts them to the asian context where relevant. a unique feature of the proposed taxonomy is that it covers transition activities that allow for a

relative to the trajectory expected in december last year, the projection for headline inflation for 2019 has remained largely unaltered. by ensuring accommodative financing conditions, monetary policy will continue to support domestic demand by mobilising idle resources. this will lead to a build - up of domestic price pressures and ultimately pull underlying inflation up as remaining slack in the economy is gradually reabsorbed and the output gap narrows further. in turn, this will facilitate a durable return of inflation back to a level that is below, but close to, 2 % over the medium term. today, an important element keeping underlying price pressures subdued is muted wage dynamics, which are shaped by many factors. at this stage, besides weak productivity developments, there is still a significant degree of labour market slack that keeps a lid on wage growth. furthermore, the process of setting wages is to some extent backward - looking in a number of euro area countries, reflecting formal and informal indexation mechanisms. 2 additionally, the timing of wage negotiations plays a role in postponing the point in time when growing confidence that inflation is approaching the ecb ’ s intended medium - term level starts to become more visible in aggregate wage figures. moreover, weak wage growth could also reflect previous downward wage rigidities : difficulties in reducing wages during earlier stages of the crisis may result, symmetrically, in a slower upward adjustment of wages as labour market conditions improve. 3 overall, while we are certainly seeing a firming, broadening and more resilient economic recovery, we still need to create a sufficiently broad and solid information basis to build confidence that the projected path of inflation is robust, durable and self - sustained. underlying inflation pressures still give scant indications of a convincing upward trend as domestic cost pressures, notably wage growth, remain subdued. importantly, the economic recovery and the outlook for price stability are still predicated on the very favourable financing conditions that to a large extent depend on continued monetary policy support. absent that quantum of support, the progress towards a sustained adjustment that we see in our projections is likely to be slower or even stall. therefore, we need to look through the recent surge in inflation, which is driven by transient factors that will probably fade before long. our conclusion that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium term remains valid. of course, monetary policy cannot be the only source of support for growth : action from other 2 / 3 bis