also involve trading in emerging market currencies, it would be prudent to obtain comfort that foreign exchange trading practices are in line with best practice. conclusion in conclusion, while a lot of work remains to be done, it is nonetheless very encouraging to note that key steps have been taken by regulators and financial institutions alike to tighten behavioural standards in the industry. it is equally encouraging that south africa, while largely sheltered from the global financial crisis, is embarking on measures to limit the risk of such crises occurring locally in the future, including strengthening market conduct regulations as part of the move to a twin peaks system of regulation. nonetheless, the future evolution of the financial industry will bring new challenges for regulators and professional bodies alike. i will only mention a few potential examples here. much has been written, for instance, about the growing role of non - bank institutions in financial intermediation, and indeed, one potential consequence of stricter regulation of banks may be to shift a greater share of transactions towards the non - bank sector. extending codes of good behaviour and governance to a broader swathe of financial market players will be a continuing task for regulators and professional bodies. another example is the changing world of information technology, and how it can bring new players into the financial system. will internet and cellular telephony companies become the major providers of financial services in the next twenty years, as more people complete financial transactions on their mobile phones? similarly, will the main centres of financial transactions migrate towards regions and countries which up to now, like china and india, have been held back by the low liquidity of their markets and the existence of capital controls, even though their share in the world economy has been growing fast? it is too early to answer, but these may be just examples of new, non - bank institutions and new major financial centres that will over time, play a larger role in global financial transactions. as such, they will have to join in the endorsement of codes of good practice, if the industry and indeed the world economy are to continue on the path to greater and safer prosperity. i therefore encourage the aci to keep up the good work, to continue building your organisation and being a constructive partner in the continuous effort of building a professional culture that is characterised by adherence to the highest standards of ethical conduct. thank you. bis central bankers ’ speeches

remains far from the hoped - for recovery. structural reforms to improve opportunities for small businesses and job seekers would increase investment and productivity, and should therefore complement the current macroeconomic policy stance of the bank. food price inflation and the exchange rate in 2015, due to favourable oil price shocks, inflation averaged 4, 6 per cent. in contrast, inflation outcomes have exceeded 6 per cent this year because of food and petrol prices. the bank expects headline inflation to average 6, 7 per cent in 2016 and 6, 2 per cent next year. food prices are increasing due to the drought, whereas petrol prices are increasing because oil prices have risen off the extremely low levels prevailing at the start of 2015 and a weaker exchange rate. the drought, like oil price movements, is a supply - side shock to inflation. domestic price increases in maize, south africa ’ s staple food, have been extreme. since 1 january 2015, yellow maize prices have increased by almost 70 per cent while white maize prices have increased by more than 130 per cent over the same period. 5 in total, food prices make up 14 per cent of the consumer price index, and this measure increased by 11, 3 per cent calculated as change in real gross value added at basic prices. as traded up to 20 may 2016 on the south african futures exchange ( safex ). bis central bankers ’ speeches in april 2016, up from 4, 3 per cent ten months earlier. food inflation is forecast to peak at 12 per cent in the final quarter of this year. dry conditions since 2015 have caused a long period of herd culling, which increased the shortterm supply of meat and temporarily suppressed meat price inflation – thus, although grains inflation has accelerated since june 2015, meat price inflation accelerated this year. meat price dynamics were an important reason why food inflation rose at a slower - thanexpected pace last year. however, this trend has reversed in 2016, as food inflation rose faster than we had anticipated in the first four months of the year. furthermore, the rising cost of meat inputs and the lower supply of animals to the market are likely to push meat prices significantly higher over the course of 2016. food prices are not solely determined by domestic supply and demand ; they are increasingly influenced by international food prices and therefore by the exchange rate. 6 this is not necessarily negative. although south africa is a net food exporter, we do not have a comparative advantage in all food production. thus we rely on international prices, which are predominantly us