tightening cycle. conclusion all in all, these considerations suggest that asset purchases should remain part of central banks ’ toolkit. they have played an important role in stabilising financial markets at times of stress and in helping central banks preserve price stability during periods of low inflation. the experience over the past 15 years suggests, however, that the effectiveness of qe in stimulating aggregate demand is state dependent and that qe can come with costs that might be higher than those of other policy instruments. two broad lessons can be drawn at this stage. first, central banks may face shocks in the future where the optimal policy response requires a more patient approach to reaching their inflation aim in the vicinity of the effective lower bound, especially after balance sheet crises. further research is needed to better understand how sensitive inflation expectations are to perceptions of policy constraints. second, central banks can reduce the costs of asset purchases by using them in a more targeted and parsimonious manner, intervening forcefully when needed but stopping them faster. examples are the commercial paper purchases by the ecb in 2020 and the interventions by the bank of england during the ldi crisis. in a bank - based economy like the euro area, the experience also suggests that other measures, such as targeted longer - term refinancing operations, can provide substantial support to the economy in the face of disinflationary shocks and instability, while leaving a smaller and less persistent footprint, as they can be reversed more quickly if conditions change. as in the past, all policy measures will need to pass the test of our proportionality assessment. the experience gained will help central banks to carefully weigh the benefits and side effects of different policy instruments in order to conduct policy appropriately, given the broader state of the economy. thank you. annexes 28 may 2024 slides 1. purchases under qe1 were initially restricted to mortgage - backed securities. 2. ecb ( 2009 ), “ introductory statement with q & a ”, 7 may ; ecb ( 2009 ), “ purchase programme for covered bonds ”, press release, 4 june ; and ecb ( 2011 ), “ ecb announces details of its new covered bond purchase programme ( cbpp2 ) ”, 3 november. 3. ecb ( 2010 ), “ ecb decides on measures to address severe tensions in financial markets ”, 10 may ; and eser, f. and schwaab, b. ( 2016 ), “ evaluating the impact of unconventional monetary policy measures : empirical evidence

ravi menon : central banks and supervisors step up climate action keynote remarks by mr ravi menon, managing director of the monetary authority of singapore and chair of the network for greening the financial system ( ngfs ), at the ngfs cop28 finance day, singapore, 4 december 2023. * * * good afternoon ladies and gentlemen. welcome to the ngfs cop28 finance day. as chair of the network of central banks and supervisors for greening the financial system, or the ngfs, i would like to thank singapore for hosting the ngfs programme at the singapore pavilion. climate change is directly relevant to central banks and supervisors because it will have a significant impact on our economies and financial systems. even an orderly transition to net - zero will have adverse effects on economic growth and inflation over the short to medium term. but if the global economy fails to make this transition, annual global gdp losses by 2050 are estimated to be twice as large as those under a net - zero transition. these adverse impacts will be disproportionately borne by emerging markets and developing economies ( emdes ), with significant implications for food security, human health, economic opportunity, and development outcomes 1. this is why the ngfs has made inclusiveness a priority over the last two years. the ngfs was established as a coalition of central banks and financial supervisors to help green the financial system and contribute to global climate action. we started with 8 founding members six years ago, but have now grown to 150 members and observers from across the world. last year, i spoke about the ngfs'ambitious and expanded work programme to strengthen collective efforts towards greening the financial system. thanks to the hard work of our members and partners, the ngfs has made substantial progress on this work programme. today, i want to highlight three key areas of that work : climate scenarios and their macroeconomic and financial impact blended finance for emerging markets and developing economies transition planning by financial institutions climate scenarios let me start by outlining key findings from the fourth vintage of the ngfs climate scenarios, which was completed and published last month. 1 / 6 bis - central bankers'speeches first, reaching net zero by 2050 will entail significant economic transformation and financial investments against much higher carbon prices than today. from where we are today, achieving net zero by 2050 will require a significant pivot towards green energy sources. under such a pathway, renewables and biomass are estimated to deliver over 80 % of global primary energy needs by