. still, most forecasters predict nova scotia ’ s economy will continue to grow at the canadian average rate this year. a third factor on our watch list is the evolution of conditions in financial markets. last autumn, we witnessed sharp increases in risk premiums because of uncertainty in financial markets. in recent months, these risk premiums have declined, and conditions in both debt and equity markets continue to improve. this reflects reduced uncertainty and bodes well for business spending going forward. before moving on to the fourth factor, i ’ d like to mention several developments since april that have implications for the economic outlook. together, these developments point to near - term growth in canada that will be lower than we expected at the time of our april monetary policy report. sars is having a significant impact on the hospitality industry, not just in toronto, but across the country - including here in atlantic canada. more recently, the closure of export markets because of the discovery in alberta of an isolated case of bovine spongiform encephalopathy ( bse ) is having an impact on the beef and beef - processing industry. and, of course, problems in several important east coast fisheries are affecting employment and production in this region. as you well know, since mid - april there has also been a further sharp adjustment in the value of the u. s. dollar against major currencies, including ours. the magnitude and speed of the canadian dollar ’ s rise has been greater than anyone had anticipated and will have a dampening influence on aggregate demand later this year and next. we are working to understand all the factors behind these exchange rate movements. in setting monetary policy, we have to take into account the effects on aggregate demand of these factors, as well as the effect of the exchange rate movements themselves. exchange rate movements also have a direct effect on the prices of traded goods and services and, therefore, on inflation. however, our research has shown that, in economies such as canada ’ s, the effect of exchange rate movements on consumer prices has been less pronounced in recent years, when inflation was relatively low, than was the case in earlier years when inflation was high. the inflation picture this leads me to the fourth factor that we watch closely in setting monetary policy — the evolution of inflation and inflation expectations. let me start with inflation. in the 3 june press release that announced our latest interest rate decision, we pointed out that inflation has declined more than expected. some of this decline is due to

arab # fintex symposium – h. e. governor opening remarks honored guests, ladies and gentlemen, good morning, and welcome to this symposium on blockchain and financial inclusion. i think we can all agree that fintech is radically changing the financial sector. rapid advances in digital technology, from artificial intelligence, cryptography to distributed legder technology are already revolutionizing the way financial services are provided. this ranges from the ( 1 ) collection and processing of financial information, ( 2 ) the way saving and borrowing is executed, ( 3 ) the channels for payment of goods, and ( 4 ) money transfers between wallets and accounts, both domestically and across borders. fintech companies are increasingly offering technology - enabled solutions that can better address customer needs and preferences by offering enhanced accessibility, convenience and tailored products. by responding to consumer needs for security, trust, privacy and lower cost services, the fintech industry is poised to affect an array of financial services in a big way. more widely, i believe that fintech has the potential to enhance financial inclusion and unlocking smes and microenterprise ’ access to financing. this is a critical aspect in driving private sector growth and further economic diversification across many countries, including the uae. however, as exciting as these developments are, as a central bank we must always be mindful of our primary goal of maintaining both the safety and soundness of the banking system, and adequate levels of consumer protection. and to that end fintech presents both challenges and opportunities for consumers, financial service providers and regulators alike. the central bank ( cbuae ) is currently in the process of developing a fintech roadmap that aims to build upon the many successes of the uae fintech ecosystem, and to cohesively deploy more balanced regulatory and development initiatives to ensure a healthy and sustainable fintech ecosystem in the long term. this roadmap will be underpinned by a balanced regulatory framework that protects consumers and maintains institutional safety and soundness on the one hand, but does not stifle innovation on the other. at the same time, we must find 1 | page ways to ensure that supporting public and financial infrastructures are put in place within the ecosystem for sustainable innovation to flourish. as a strong advocate towards the uae ’ s innovation and fintech agenda, the cbuae has developed and launched multiple initiatives to help advance applications of technological innovation that will collectively benefit every stakeholder in the uae economy. allow me to name a few :