##b will review and possibly reconsider its monetary policy stance. the economic recovery is still vulnerable ; it is cyclical and not genuinely structural. new risks have arisen, such as the growth slowdown in emerging countries. and inflation expectations are still markedly disappointing. will there already be new measures in march? we are closely monitoring the economic data. the tone in the governing council ’ s statement is one of alertness. the inflation rate remains well below the ecb ’ s official target : below, but close to 2 % over the medium term. shouldn ’ t the inflation target be adjusted? definitely not! we are determined to reach our objective. moreover, adjusting one ’ s objective precisely when it is more difficult to achieve would completely undermine the ecb ’ s credibility. the rate of 2 % is a medium - term objective. it is not linked to a fixed date. it depends, among other things, on the nature and frequency of economic shocks and how they pass through and influence inflation expectations. if inflation expectations come under too much pressure, you have to intervene. many people say : isn ’ t low inflation a good thing? surely it means i can buy more? yes, if you have a job. but many people are out of work. you also often hear that low inflation is caused by the low oil prices. however, low oil prices for an important part stem from a decline in global demand. so the current low rate of inflation is also a reflection of some economic weakness. bis central bankers ’ speeches

ravi menon : china at an inflection point – what does it mean for asia? speech by mr ravi menon, managing director of the monetary authority of singapore, at the official monetary and financial institutions forum ( omfif ) city lecture, london, 5 may 2016. * * * mr david marsh, managing director and co - founder of omfif ms foo chi hsia, singapore ’ s high commissioner to the uk distinguished guests, ladies and gentlemen the china syndrome china ’ s size and promise have long enthralled the world. • the dream of penetrating china ’ s market was colourfully captured in the words of a british commentator in the 1840s : “ if we could only persuade every person in china to lengthen his shirt - tail by a foot, we could keep the mills of lancashire working around the clock ” • well, war, revolution, and central planning quickly laid to rest that fantasy. since the closing decades of the last century, the gravity - defying growth and transformation of the chinese economy have once again stirred global imagination. • gdp growth averaged 10 % per annum during 1980 – 2010, ahead of virtually all other economies. china ’ s size, growth, and rapid integration with the rest of the world mean that no evaluation of the global economy can be complete without looking at china. • in 2000, just 5 countries ranked china as their top export market, compared to 53 countries that ranked the us similarly. • in 2014, 43 countries ranked china as their top export market, higher than the comparative figure for the us, at 31. the recent slowdown in the chinese economy and volatility in its financial markets have therefore sparked fears that the chinese economy was headed for a “ hard landing ” and that it would drag down much of asia with it. but much like the dreams of a vast insatiable market two centuries ago, today ’ s fears are understandable but overblown. to many, china ’ s economy seems like what winston churchill described the soviet union half a century ago : “ a riddle wrapped in a mystery inside an enigma ”. china is indeed a complex economy but is not necessarily beyond comprehension. china ’ s economy is at a major inflection point. it is facing three necessary but significant challenges at the same time : • first, the chinese economy is adjusting to a lower rate of growth. managing this moderation without major dislocation is a key priority for china ’ s policymakers. • second, china is addressing