shelter. in addition, near - term inflation expectations and wage growth remain elevated, and corporate pricing behaviour is normalizing only slowly. 1 / 2 bis - central bankers'speeches the combined impact of all these pressures on inflation is that we now expect inflation to be about 3½ % through to about the middle of next year. as excess supply in the economy increases, inflation should ease in 2024 and reach 2 % in 2025. overall, inflationary risks have increased since july. the forecast we released last week has inflation on a higher path than we expected last summer. in addition, rising global tensions, particularly the war in israel and gaza, have increased the risk that energy prices could move higher and supply chains could be disrupted again, pushing inflation up around the world. with clearer evidence that monetary policy is working, my colleagues on the bank's governing council and i judged last week that we could be patient and hold the policy rate at 5 %. however, to be confident that our policy rate is high enough to get inflation back to 2 %, we need to see more easing in our measures of core inflation. we will continue to assess whether monetary policy is sufficiently restrictive to restore price stability, and we will monitor risks closely. our decision last week reflected our best efforts to balance the risks of over - and undertightening. we don't want to cool the economy more than necessary. but we don't want canadians to have to continue to live with elevated inflation either - and we cannot let high inflation become entrenched in the economy. if inflationary pressures persist, we are prepared to raise our policy rate further to restore price stability. in summary, we have made a lot of progress reducing inflation, but we are not there yet, and we need to stay the course. when price stability is restored, the economy will work better for everyone. with that summary, i would be pleased to take your questions and begin our discussion. 2 / 2 bis - central bankers'speeches

agenda, this year ’ s workshop aims to discuss two key areas that were approved by the membership earlier. these two topics namely, digital id / e - kyc and financing and facilitation of foreign terrorist fighters, are timely given the current development in our region. allow me to touch briefly on these two topics. digital id / e - kyc the rapid technology advancement in the last decade has led to significant innovations in the financial sector. then came the covid - 19 pandemic, which has accelerated the need for financial institutions around the world to shift their operations onto the digitalised platforms. digital id / e - kyc is one such innovation and the authorities have responded accordingly. for example : aml / cft regulators, such as bangladesh, hong kong, india and malaysia, have started introducing guidelines and policies on e - kyc ; and governments have also started exploring the establishment of digital id platforms to facilitate e - kyc, as seen in singapore and thailand among others. 1 / 3 bis central bankers'speeches a conversation on this subject is also timely in view of the recent issuance of the financial action task force ’ s ( fatf ) guidance on digital identity in march 2020. participants should seize the occasion to share experience in facilitating the adoption of e - kyc while ensuring compliance with the relevant fatf standards. as technology enhances the efficiency of the financial sector, i have no doubt that the shift towards digitalisation will continue to accelerate. we as regulators should strive to facilitate this transformation while being cognisant and vigilant of the risks that this can pose to the stability and integrity of the financial system, including ml / tf risks. in this respect, authorities could play our part by ensuring that all aml / cft measures remain relevant and appropriate as well as assisting the financial institutions in complying with aml / cft requirements. as regulators, it is imperative for us to strike a fine balance between facilitating innovation and safeguarding our financial system from any form of abuse. financing and facilitation of foreign terrorists fighters as approved in the apg 2019 annual meeting, apg has collaborated with the global centre on cooperative security, towards producing a typology report on financial profiles of foreign fighters and returnees in southeast asia. this report comes at an opportune time as there have been growing concerns that terrorist groups are using the pandemic outbreak to advance their propaganda and fundraising efforts. although the risk seems muted at the