inflation expectations safely below 2 %. the interest rate decision was thus taken in a forward - looking manner which focused on maintaining price stability and would thus contribute to sustaining non - inflationary economic growth in the euro area over the medium term. i think that this comparison between the two decisions to change ecb interest rates in april and november is instructive. it shows that we do not react mechanistically to individual indicators, but always interpret the movements and signals in all of the indicators evident in both pillars in conjunction with each other. as we can see, this is a more reasonable approach than relying on a simple indicator, given that we are living in a complex world. after having discussed our strategy and the rationale behind our monetary policy decisions against the background of that strategy, i should like to say a few words about the eurosystem ’ s monetary policy instruments. the single monetary policy of the eurosystem is based on an operational framework that is common for all euro area countries. this operational framework turned out to be an effective instrument for steering money market interest rates and for limiting fluctuations in overnight rates. the eurosystem influences money market conditions mainly through its regular open market operations. the weekly main refinancing operations provide the banking system with short - term liquidity and the interest rate on this instrument gives an indication of the eurosystem ’ s monetary policy stance. in addition, the “ standing facilities ” effectively limit fluctuations in the money market interest rate. finally, the averaging provisions of the minimum reserve system have contributed towards smoothing daily fluctuations in the money market. the success of this operational framework can be demonstrated by the fact that the eurosystem has not yet found it necessary to recourse to any fine - tuning operations. moreover, since january, active market participants have typically and quickly eliminated cross - country interest rate differentials in the money market through arbitrage. overall, developments in short - term money market interest rates have thus far been very stable and money market rates have, on average, been close to the interest rates at which the ecb has provided liquidity through its weekly main refinancing operations. for an efficient conduct of monetary policy operations, it is essential to have the support of a powerful payment system. since its establishment, target has become one of the largest real - time gross settlement payment systems in the world. the system has increased the use of real - time gross settlement in the eu by roughly 20 % since the introduction of the

we remain vigilant. the challenges posed by african bank ’ s failure raises several policy questions that are of relevance for many countries in the world. how do we define financial inclusion in a developing country context? for many, financial inclusion refers to the ability to access credit. while access to credit is important, surely financial inclusion should also focus on enabling poor households to accumulate assets, transact efficiently and insure against the normal risks associated with everyday life. south africa will continue to take steps to promote financial inclusion but we will not tolerate unhealthy lending practices or excessive risk - taking in the financial sector. the second policy challenge that african bank has brought to the fore is the degree to which the financial sector and the banking system in particular is interconnected and interdependent. this is a difficult balance to strike because, from an individual bank or company perspective, inter - dependencies reduce risk. however, from a system perspective, interdependencies increase risk. we all have much to learn about how we promote financial deepening and integration but protect the system against systemic risk. as a reflection of our commitment to enhance a sound and effective financial sector, and learn from the global crisis, south africa ’ s adoption of a “ twin peaks ” regulatory framework will be formalised in the course of the next year, with legislation setting out the roles and responsibilities of all parties in the financial regulatory architecture. this legislation draws on both international and our own experiences, creating a prudential authority with the bank, and a market conduct authority that will take the place of the financial services board. in conclusion, the world economy is in a better position than a year ago, but the crisis is not over and significant risks remain. global trade is rising, after stagnating for several years. notwithstanding a withdrawal of liquidity in some advanced economies, financial flows continue to impact on emerging markets. 2014 flows to south africa have been volatile and at an elevated price, with september seeing significant outflows such that year to date flows are negative at some r22bn. experts are beginning to talk about prices of several commodities reaching the bottom, with the potential for a period of either stability or modest price increases going forward. these trends should support growth going forward in subsaharan africa, particularly given the significant discoveries of oil and gas. on the other hand, geopolitical factors continue to affect growth in europe, the middle east and north africa. the keenly contested scottish independence