##shing slightly. as growth of banknotes in circulation is on a downtrend due mainly to decreasing anxieties about the financial system, the year - on - year growth rate of the monetary base is moving around 15 percent. the year - on - year growth rate of the money stock is at the 1. 0 - 2. 0 percent level. as for developments in financial markets, money market conditions continue to be extremely easy, as the bank of japan provides ample liquidity. in the foreign exchange and capital markets, while the yen ’ s exchange rate against the u. s. dollar is rising somewhat from the previous month, stock prices are declining slightly. long - term interest rates are around the same level as last month. this report is based on data and information available at the time of the bank of japan monetary policy meeting held on february 4 and 5, 2004. the bank's view was determined by the policy board at the monetary policy meeting held on february 4 and 5, 2004.

- pesa paybill for the acceptance of deposits will enable the transfer of electronic value from safaricom ’ s m - pesa money transfer platform to a customer ’ s bank account. the benefits of the pesa pap products just like other mobile products already existing in the industry cannot be gainsaid. this product is a technological solution that will provide the following key benefits : build up of savings : with the transfer of electronic value from safaricom ’ s m - pesa money transfer platform to a customer ’ s bank account, a synergetic relationship is created in terms of deposit mobilization for the bank while the customers benefit in building up their savings for future investment. convenience : access to financial services on the mobile phone will certainly lower the cost of transfer of remittances, improving the safety and security of cash and make payments more convenient. serving the unbanked and the under - banked : with 32 percent of kenya ’ s bankable population being excluded from formal and informal financial services as indicated by the national financial access survey in 2009, mobile phone banking services will reduce the cost of running banking operations in order to enhance access to affordable, flexible and faster services to customers and by and large the “ unbanked ” population in kenya. part of this exclusion has been due to costs and physical distance. these twin problems have been solved by pesa pap products. supporting vision 2030 : the rolling out of such innovative products will bring about immense contribution in deepening the financial sector. it is through financial deepening that a majority of the kenyan population will access financial services easily and affordably. this will increase savings and build up of assets through affordable credit, and through increased savings and investment we will walk the path determined by vision 2030. ladies and gentlemen : i am delighted and encouraged by the way the banking sector is embracing technology and demystifying the mobile and internet banking services from the perception that it is suited for the rich and well - educated but that the poor and the marginalized can as well be brought on board. markets are developed by increased participation. increased participation reduces unit costs. that is why cost of credit, via base lending rates are declining. as i conclude my remarks, let me reiterate that the central bank appreciates the initiatives and innovations by the banking sector in coming up with new products targeted at niche consumers and is committed to the creation of an enabling regulatory environment. we shall, on a continuous basis, revise relevant regulations that will