however cognisant of the current cost - push pressures and the potential of these to filter through to more generalised price pressures. these pressures will be closely monitored, and the mpc will take timeous action to ensure that second round effects do not take hold and that inflation pressures are kept in check. 6. conclusion to conclude, uncertainty in the global environment has not abated, as reflected by increased volatility in financial markets. while the global recovery has proceeded at a moderate pace, it remains unbalanced and uneven. to this end, the g20 is addressing issues of global imbalances and also reflecting on the future global monetary system. such developments will have an impact on south africa and policy developments going forward, as we are part of the global economy and one of the more liquid amongst emerging market financial markets. south africa ’ s growth outlook has improved, although it remains below pre - crisis levels and below that of other emerging and developing countries. inflation has recently trended higher, and while the bank ’ s forecast shows that cpi will breach the upper end of the target range, based on current information the mpc expects that this will be a temporary breach. however, developments will be closely monitored for any second round effects which could result in broader based price pressures. thank you. bis central bankers ’ speeches

r42 billion in low - income housing finance by 2008. the bank continued to make a significant contribution to economic co - operation in africa by for expample liaising closely with the association of african central banks regarding the implementation of the african monetary cooperation programme and participating in an ongoing study outlining the costs and benefits of the creation of a common central bank for lesotho, namibia, swaziland and south africa ( the decisions in this regard will be taken by the political leaders of these countries ). in february 2005 the bank hosted a seminar with the european central bank ( ecb ), attended by southern african development community ( sadc ) central banks in which views on the road towards a single central bank for sadc were discussed against the background of the ecb experience. the mou on the harmonisation of legal and operational frameworks of sadc central banks was finally approved by ministers for finance at their meeting held on 5 august 2005 after extensive consultations. at their september 2005 meeting, the committee of central bank governors ( ccbg ) in sadc signed memoranda of understating ( mous ) on exchange control, information and communications technology and payment, clearing and settlement systems. in may 2005, the bank was privileged to host the first financial stability forum ( fsf ) african regional meeting. participants included ministers of finance, governors of central banks and senior officials from finance ministries, central banks and regulatory authorities from various countries in africa as well as members of the fsf. in june 2005 the bank participated in workshops on a sadc cross - border settlement model. the bank, in conjunction with other central banks in the sadc region, is investigating options to facilitate the settlement of cross - border payments within the region. the bank contributed significantly to the development and deployment of the bank supervision application solution, a computerised system which was developed on behalf of sadc and some east african countries. this application was deployed in all eleven participating countries and is utilised to supervise commercial banks and other financial institutions. international involvement obviously extends beyond africa and the bank continued participating and collaborating in the activities of a number of international organisations, central banks and universities. for example, a highly successful g - 20 seminar on economic growth, co - hosted by the bank along with the people ’ s bank of china and the banco de mexico, was held in pretoria in august 2005, and the findings were discussed at the meeting of deputy finance ministers and deputy central bank governors in china in september and ultimately