be concluded by next year. in the area of financial markets, an implementation plan for an integrated capital market has been developed to enhance market access, linkages and liquidity. asean has also made bis central bankers ’ speeches significant advancements in the areas of supporting financing for infrastructure development, as reflected by the establishment of the asean infrastructure fund in 2011. notwithstanding these developments, a crucial driver for greater financial integration within the core of asean financial systems is the banking sector. asean banks have a significant role in supporting the financial integration process. over the recent decade, we have witnessed the rising prominence of asean financial institutions within the region, driven by the growing business fundamentals in the region and the strengthened capacity of the financial institutions. asean commercial banks are predominant mobilisers of financial funds, as our experience shows, the banking sector is the most matured component in the financial sector of most jurisdictions. the banking sector therefore serves as an important conduit to increase connectivity among all asean nations and in fostering financial integration. towards this end, the asean central banks have endorsed the asean financial integration framework in 2011 and are in the final stages to launch the framework for banking sector integration. this will pave the way for a more meaningful presence of qualifying asean banks within the region, while promoting regional financial stability. recognising the diversity of asean economies and the varying stages of financial sector development, the framework allows flexibility for asean countries to participate in the integration process based on their readiness and willingness. under the framework, qualifying asean banks that have the capacity and that are well managed will serve as the regional standard bearers, and will be accorded more flexible access into regional markets. greater flexibilities will also be given to facilitate the regional expansion plans of qualifying asean banks to become important conduits of financial intermediation in the region. tremendous opportunities can be harvested from this new framework. hence, i welcome and look forward to the greater participation by financial institutions from all asean countries in this process. imperatives for banking sector going forward at this juncture, let me turn to imperatives for the banking sector going forward. there is a fundamental rethinking of banking by the international community in the aftermath of the recent global crisis. these are both driving and shaping the raft of reforms at the global level. i would like to touch briefly on four developments which could serve as a foundation for sustainable banking in the medium and longer - term. first, is for reduced complexity and increased transparency in

— like computer chips — has spread to a wide range of goods. the invasion of ukraine intensified supply chain problems and pushed up commodity prices and inflation worldwide. and large parts of china are now under a renewed lockdown, causing further supply issues, transportation backlogs and uncertainty. 5 / 7 bis central bankers'speeches these are things we didn ’ t foresee. we know we have a ways to go before canadians can fully judge the success of our actions. there is still work to do. the job is not complete. we will continue to focus on building and maintaining the trust of canadians, and we know canadians will continue to hold us to account. trust in times ahead now, i ’ d like to wrap up by saying a few words about where we are today and what canadians can expect from us going forward. the good news is the economy has recovered remarkably fast. as public health measures ease, canadians are spending more. business investment and exports are both picking up, and higher prices for the commodities we export means more revenue coming into canada. job growth is strong, wage growth has returned to pre - pandemic levels and the unemployment rate is at a record low. there are now almost twice as many vacant jobs as there were before the pandemic, which means wages are likely to increase as businesses compete for workers. the bad news is that canadians are facing high inflation for the first time in more than three decades. with inflation running close to 7 % and spreading to more and more everyday items, it ’ s squeezing budgets for families and putting pressure on businesses. high inflation here in canada and around the world largely results from global pressures such as supply chain disruptions and elevated commodity prices. but with the canadian economy starting to overheat, we can ’ t let demand get too far ahead of supply or we risk adding further to inflation. that is why the bank has taken concrete and decisive actions. we raised our policy rate and started the process of quantitative tightening — letting the bonds we purchased over the course of the last two years mature and roll off our balance sheet. interest rates remain low, but they are rising, and they will need to move higher still. these actions will moderate domestic demand so that a buildup in domestic prices doesn ’ t add to the inflationary pressures in canada that are coming from global factors. raising the policy rate will help moderate spending and rein in inflation. it will make borrowing costs more expensive, and we understand this has many canadians worried.