now expected to return to full capacity in the first half of 2013. as a result of this reduced slack and higher gasoline prices, the profile for inflation is expected to be somewhat firmer. after moderating this quarter, both total and core inflation are expected to be around 2 per cent over the balance of the projection horizon as the economy reaches its production potential, the growth of labour compensation remains moderate, and inflation expectations stay well - anchored. bis central bankers ’ speeches despite recent improvements to the outlook for the global and canadian economies, risks remain elevated. the three main upside risks to inflation in canada relate to the possibility of higherthan - expected oil prices, stronger - than - expected growth in the u. s. economy and stronger momentum in canadian household spending. the two main downside risks to inflation in canada relate to a reintensification of sovereign debt and banking concerns in europe, and the possibility that growth in canadian household spending could be weaker than projected. overall, the bank judges that the risks to the inflation outlook in canada are roughly balanced over the projection period. reflecting all of these factors, the bank yesterday maintained the target for the overnight rate at 1 per cent. in light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. the timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments. with that, tiff and i would be pleased to take your questions. bis central bankers ’ speeches

##2. 9 million as at end of december 2004. the growth in asset values reflects good performance by the board and management of those institutions and on - going supervision by the central bank. membership also increased significantly from 131, 000 in 2004 to 216, 000 as at end of march 2009. the national development bank ( ndb ) is an important development institution that provides credit to development projects such as those in the agriculture sector. development lending is usually targeted towards individuals with low capital and longer grace periods for the repayment of loans. efforts to commercialize the ndb from its mandated function may not assist in achieving the developments objectives of the government. payments system the central bank is also undertaking a strategic project to improve the payments system of papua new guinea. an efficient payment system is therefore a vital component of a modern economy and society. conclusion ladies and gentlemen, in an environment where many banks and financial institutions around the world affected by the global financial crisis are contracting, it is pleasing to note that we in papua new guinea are still expanding. our banking system is sound, liquid and prudentially managed and is prepared to take on the challenges offered in the advent of global financial crises, the fast pace of private lending growth, development of the lng project and a changed risk landscape of png. everyone must play its part in upholding these hard fought gains. thank you.