immigrant labor supply. although we have seen signs that the labor market is coming into better balance, progress has slowed. recent employment reports continue to show a tight labor market, and the unemployment rate remains below 4 percent, with the number of job openings relative to unemployed workers still above its pre - pandemic level. throughout last year, the average pace of job gains slowed, and 1 / 9 bis - central bankers'speeches the labor force participation rate rose, but in recent months, job growth has rebounded. labor force participation flattened out around last year's peak, which suggests no further improvement in labor supply along this margin, as labor force participation among those aged 55 and older has been persistently low. at its current setting, our monetary policy stance appears to be restrictive, and i will continue to monitor the incoming data to assess whether monetary policy is sufficiently restrictive to bring inflation down to our target. as i've noted recently, my baseline outlook continues to be that inflation will decline further with the policy rate held steady, but i still see a number of upside inflation risks that affect my outlook. first, much of the progress on inflation last year was due to supply - side improvements, including easing of supply chain constraints ; increases in the number of available workers, due in part to immigration ; and lower energy prices. it is unclear whether further supply - side improvements will continue to lower inflation. geopolitical developments could also pose upside risks to inflation, including the risk that spillovers from regional conflicts could disrupt global supply chains, putting additional upward pressure on food, energy, and commodity prices. there is also the risk that the loosening in financial conditions since late last year and additional fiscal stimulus could add momentum to demand, stalling any further progress or even causing inflation to reaccelerate. finally, there is a risk that strong consumer demand for services, increased immigration, and continued labor market tightness could lead to persistently high core services inflation. given the current low inventory of affordable housing, the inflow of new immigrants to some geographic areas could result in upward pressure on rents, as additional housing supply may take time to materialize. wage growth has remained at an elevated rate of about 4 to 5 percent, still higher than the pace consistent with our 2 percent inflation goal given trend productivity growth. in light of these risks, and the general uncertainty regarding the economic outlook, i will continue to watch the data closely as i assess the appropriate path of monetary policy. the frequency and

the points made at that meeting of minds. while it was generally agreed that economic growth is one of the most important challenges facing all countries, it was emphasised that no universal recipe for growth exists since each country faces a different set of constraints. there is more to growth than good macroeconomic policy. to obtain higher growth does not seem to require a large set of very fundamental or deep reforms, but rather a more effective focus on a small set of binding constraints. it is extremely important that appropriate strategies be developed to properly identify such binding constraints. such action requires an institutional setting that allows for a dynamic process where problems are identified, on the one hand, but also effectively addressed, on the other. in doing so not only government failures have to be dealt with, but also market failures, such as large externalities, that require government action. the list of possible binding constraints is virtually endless. some studies have suggested that high levels of taxation discourage growth through their effect on incentives to work, save and innovate. others have pointed to the importance of protecting private property rights if growth is to be dynamic. still others note the importance of human capital, and highlight the role of education as a determinant of economic growth. excessive rules and regulations can stifle economic progress, slowing fixed capital formation, undermining flexibility and discouraging productive enterprise. establishing which of these, and many more candidate constraints, is most relevant and then getting policies right is crucial if trend growth is to be increased. as these examples illustrate, many of the things that impact on the quantity and efficiency of the factors of production are quite broader than monetary policy and the ambit of central bank influence. 1 / 4 as we all know, economic growth might be a necessary but not a sufficient factor in employment creation. what monetary policy can do sound monetary policy can provide a stable platform for sustainable economic and employment growth. this is recognised in national economic policy and in the south african reserve bank act, both of which assign to the bank the objective of achieving and maintaining price stability in the interest of balanced and sustainable economic growth in the republic. high inflation causes numerous well - documented distortions and frictions in the economy. the higher inflation is, the more variable it also tends to be, adding further uncertainty to economic decisionmaking. low inflation enhances predictability and planning, reduces the uncertainty premia built into nominal and real interest rates, and thereby supports sustained and balanced economic growth. the view that a monetary policy