, new gensaki, and old gensaki ), with correspondingly diverse market conventions ( chart 10 ). this is considered to be one factor that impedes efforts to improve efficiency and automation in the processing of repo transactions. in addition, it is often said that the loan - type repos cause difficulties in communication among domestic participants, and overseas authorities and participants, because the loan - type repos have the same legal characterization as securities lending in major overseas markets. consequently, the unification of repos to the new gensaki contracts will contribute to the further globalization of japan ’ s money market and lead to the vitalization of japan ’ s repo market, including transactions with foreign investors who are present here today. market participants are expected to improve their it systems, change market conventions, and seek clients ’ involvement. the bank is committed to offering support to achieve these goals. concluding remarks today, i have talked about the four key ideas regarding the reform of japan ’ s repo market : transparency, stability, efficiency, and globalization. in the creation of a market - wide infrastructure, these four ideas are important for not only the repo market but also the financial markets as a whole. the share of jgb holdings by foreign investors is expected to expand over the medium and longer term, reflecting changes in domestic savings and investment. developing a safe and attractive repo market for investors both at home and abroad would contribute to boosting liquidity in the jgb market. this would also increase trust in japan ’ s financial markets. reforms in the repo market, which were initiated by the failure of the lehman brothers, are expected to reach their final stage in two to three years. in this regard, we are at a critical moment for fulfilling the reforms. the bank judges that it is extremely important for the repo market, the epicenter of japan ’ s money market, to become more transparent, stable, efficient, and easily accessible for foreign investors. the bank will hold a repo market forum on may 14, and will exchange opinions with major repo market participants on the four key ideas behind the reform. the bank aims, together with market participants, to contribute further to the development of the repo market and to the tokyo financial market. thank you very much for your attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

, informe trimestral, abril – junio 2015, august. bis central bankers ’ speeches inflation and monetary policy monetary policy in mexico has been guided by the priority aim of attaining price stability, which, within an inflation - targeting approach, means a permanent objective of 3 percent annual inflation. the conduct of monetary policy has taken into account the cyclical phase of the economy. in the last two and a half years, the policy interest rate was cut by 150 basis points to accommodate sluggish economic activity. after some price pressures in 2014 coming mainly from tax hikes, annual inflation in 2015 has remained on target, even reaching historically low levels below the objective. this achievement is noteworthy, given the fact that until only a few years ago, mexico had a long history of high and unstable inflation. therefore, it is imperative to consolidate the record, recognizing that price stability demands continuous attention to prevent a reversal of the trend. some factors call for vigilance. recent performance has been aided by positive shocks such as favorable base effects related to last year ’ s tax hikes, the elimination of domestic longdistance telephone charges, and slower increases in energy prices. these phenomena may prove ephemeral. peso depreciation has not affected inflation much so far, and the impact has been concentrated in durable goods. this may not be the case going forward, especially if the weakening of the currency becomes amplified. additionally, in spite of current unprecedented declines in inflation, survey expectations for the medium term are stable but above the target. this may reflect a perception that work still needs to be done to solidify the good results. price stability will not be secure until mediumterm inflation expectations are firmly anchored on the objective. the bank of mexico expects inflation to remain around the target in 2015 and 2016. 9 nevertheless, upside risks should be monitored, especially given the possibility of secondround effects. continued significant peso depreciation, negative supply shocks, and eventual aggregate demand pressures are among these risks. concluding remarks let me conclude by saying how much i value the contributions of the university of texas at el paso to the understanding and collaboration between our societies. we have exploited opportunities in better ways due to the assiduous efforts of academics from this university, and i have no doubt that further progress is yet to come. texas and mexico continue to find new avenues to profit mutually from trade, investment, and human capital resources. mexico currently faces challenges both on the international and domestic fronts.