european central bank : press conference - introductory statement introductory statement by mr willem f duisenberg, president of the european central bank, and mr christian noyer, vice - president of the european central bank, at the press conference, held in frankfurt, on 5 october 2000. * * * ladies and gentlemen, the vice - president and i are here to report on the outcome of today ’ s meeting of the governing council of the ecb. the following decisions were taken today : 1. the minimum bid rate on the main refinancing operations of the eurosystem will be raised by 0. 25 percentage points to 4. 75 %, starting from the operation to be settled on 11 october 2000. 2. the interest rate on the marginal lending facility will be raised by 0. 25 percentage points to 5. 75 %, with effect from 6 october 2000. 3. the interest rate on the deposit facility will be raised by 0. 25 percentage points to 3. 75 %, with effect from 6 october 2000. including today ’ s adjustment, since november 1999 we have raised ecb interest rates by a total of 225 basis points, with the objective of sustaining price stability in the euro area over the medium term. today ’ s decisions continue to aim at ensuring that upward pressures on consumer prices stemming from oil prices and the foreign exchange rate of the euro do not translate into more permanent inflationary tendencies. it is important to address these risks adequately in order to preserve steady gdp and employment growth in the medium term. let me explain our decisions in greater detail by reporting on our regular examination of recent monetary, financial and economic developments and their implications for monetary policy aiming to maintain price stability in the medium term. starting with the first pillar of the monetary policy strategy of the ecb, the three - month average of annual m3 growth declined to 5. 3 % in the period from june to august 2000, from 5. 5 % in the period from may to july 2000. as had been indicated earlier, in august the preparations of telecommunications firms to transfer the funds due in early september to purchase licences in the german umts auction appeared to have a temporary upward impact on m3 growth. taking this special factor into account, short - term developments in monetary aggregates seem to be more moderate than the august data would suggest. this notwithstanding, from a medium - term point of view, liquidity conditions continue to be ample in the euro area. this assessment is based on the protracted deviation of m3 growth

regional financing arrangement through the chiang mai initiative. these initiatives are significant not only for their tangible economic benefits, but also as symbolic demonstrations of the collective interest in regional financial cooperation. alliances among asian exchanges another area with potential for regional financial collaboration is in the securities and futures exchanges market. in us and especially in europe, a wave of consolidation among leading exchanges has resulted in mega - exchanges that have the economies of scale to make investments in advanced infrastructure, offer competitive fees, and most importantly provide investors and issuers with the liquidity that they seek. exchanges in asia have thus far been largely insulated from the trends of consolidation. asian stock markets are generally smaller in size and less liquid than those in more developed countries. to remain relevant to international investors in this changing landscape, regional exchanges should deepen their collaboration with one another. the decision of the recent asean finance ministers ’ meeting to explore alliances and linkages among asean securities markets will catalyse and encourage this collaboration. regional exchanges are already taking the first steps. the singapore exchange, sgx, for instance, established a co - trading linkage with the australian stock exchange in 2001. it is in discussions with tokyo stock exchange on a possible alliance, and has recently started talks with bursa malaysia, formerly the kuala lumpur stock exchange, on possible collaborations. pressing on with reforms at the national level while pursuing regional initiatives, individual countries need to press on with reforms at the national level. although many asian countries have significantly strengthened their financial systems, they still need to follow through with reforms in the financial and corporate sectors. singapore ’ s financial system was lucky to emerge from the asian crisis relatively unscathed. during the crisis, we undertook an extensive liberalisation program aimed at deepening and broadening capital markets, consolidating and upgrading the local banks, and enhancing singapore ’ s position as an international financial centre. at the same time, we put in place a new supervisory framework to oversee financial institutions, shifting from one - size - fits - all regulation to more risk - based supervision. our efforts have achieved encouraging results. our debt market has grown three - fold since 1998 to reach s $ 90 billion in 2002, driven by growing demand in the region for debt financing. our wealth management industry more than doubled in the same period, with total assets under management growing from s $ 150 billion in 1998 to s $ 344 billion in 2002. in treasury activities, we have maintained our position as the fourth largest fx centre in the world, with