action, it also needs to be recognised that while policy makers in certain instances may have more data at their disposal than market participants, the information available is by no means perfect or conclusive enough to allow an analysis that could result in undertakings or even promises of future action. it is also important for market participants to realise that while feedback mechanisms between the market and policy makers are invaluable, central banks will always be careful not to allocate a disproportionate weight to market information that may be embedded in market prices such as fra rates, and will always cross - check with other information and relevant economic variables. while at times policy makers may feel the need to correct certain impressions that may exist and are influencing market prices at particular times, or give appropriate guidance, it should not be expected of policy makers to keep commenting directly on short - run market movements, as has been suggested by some. „ running commentary [UNK] in this regard could unnecessarily add to volatility. concluding remarks let me conclude by once again thanking you for attending our event today, and also thank you for the cooperation we have enjoyed with you over the past year as both policy makers and market participants were navigating choppy waters within an increasingly complex environment. our consultative structure in the form of the financial markets liaison group ( fmlg ) has matured, and i would like to thank many of you present today, who participate in bis central bankers ’ speeches the various sub - committees of the fmlg and provide us with valuable inputs to inform our work here at the central bank. the fmlg will continue to play an important role as we further develop our markets and ensure their efficiency, transparency and integrity. in this regard, we also continue to monitor global investigations around reference rates. furthermore, we have noted with concern the recent reports from abroad regarding the investigations around alleged foreign exchange manipulations. we will continue to monitor and consult developments in this regard and consult when necessary to ensure that practices in our financial markets continue to be characterised by appropriate levels of transparency and integrity. let me now hand over to leon myburgh to share with you initiatives that the financial markets department has been busy with. thank you. bis central bankers ’ speeches

daniel mminele : recent major developments in global and domestic markets address by mr daniel mminele, deputy governor of the south african reserve bank, at the financial markets department ’ s annual cocktail function, pretoria, 24 june 2014. * * * good evening, it is a great pleasure for me to welcome you all to the financial markets department ’ s annual cocktail function. as has become tradition for this event, we would like to take stock of the major developments in global and domestic financial markets over the past year, before updating you on matters relating to the financial markets department and initiatives undertaken over the past year. tonight we will adopt a different approach, namely that i will cover the first section, and then hand over to leon myburgh, head of the financial markets department, to update you on departmental activities. given recent releases of the monetary policy review, the quarterly bulletin and speeches, i shall not comment in any detail on recent economic developments. re - pricing of risks in international and local financial markets those of you who were able to attend our function last year will recall that the assessment at the time was that of increasing confidence about the gradual “ healing ” of the global economy and financial system, and the reduction in “ tail risks ” that had unsettled markets for the previous two years. these improvements were at the time largely attributable to the drastic policy actions undertaken on an on - going basis by the world ’ s major central banks. yet at the same time, it was already becoming evident that there was a build - up of risks, and that the impact on financial markets of the timing, as well as the pace, of the eventual and unavoidable reversal of these extraordinary measures, could be substantial. looking back over the past twelve months, these factors became the dominant drivers of market movements, as was anticipated at the time. the gradual improvement in the major economies that was expected a year ago has continued, by and large, to materialise. global economic growth has picked up, albeit unevenly. the underlying strength of the recovery has been confirmed in the united states, the euro zone has emerged from recession, and there are indications that a prolonged period of deflation could be ending in japan. the extent of the slowdown in emerging market economies appears to have been one of the main surprise developments over the last year as emerging markets were not spared the negative consequences of global risk realignment while expectations of lesser liquidity provision by the us federal reserve led to