in the near future if world economic growth rebounds and the financial market situation in the developed countries normalizes. on its part, the bank will continue to minimize the adverse impacts of second round price effects that may arise from the external shocks by pursuing appropriate monetary policy. 3. conclusion the central bank remains committed to the low inflation objectives in the medium term outlook and shall implement an appropriate monetary policy stance aimed at setting money supply to such a level that would keep inflation on track to deliver price stability. accordingly, while the economy will be allowed to adjust to exogenous shocks, the central bank policy actions will aim at minimizing the second round effects feeding into domestic inflation. it should be pointed out that continued fiscal discipline ; financial markets development, sustained financial stability and deepening have provided a conducive environment for doing business in uganda. the gains achieved so far will be consolidated by continuing the coordination of monetary and fiscal policies to ensure macroeconomic stability. there is need for urgent action to tackle supply side constraints to increase production. going forward, reforms to improve efficiency of institutions will continue to be implemented and significant investment effected in infrastructure to reduce the costs of doing business in the country. government has already committed itself to address the infrastructure requirement in roads, energy and communication sectors. the private sector is therefore called upon to take advantage of the available opportunities in the global community and neighboring countries to increase the supply of food and other products to maximize the gains from these opportunities.

is able to conduct monetary policy in an effective and flexible manner by taking account of the economic, price, and financial conditions - - including the impact on the functioning of financial intermediation - - as it directly targets long - term interest rates. another component of the new framework is an " inflation - overshooting commitment. " with this commitment, the bank aims to raise inflation expectations by demonstrating its strong determination. the bank has attempted to make expectation formation more forward - looking through qqe. in reality, however, before the forward - looking expectation formation fully took hold, the observed inflation rate declined, due mainly to the fall in crude oil prices. as a result, people's inflation expectations also declined in an adaptive manner. therefore, i consider that, in order to achieve the price stability target of 2 percent, it is absolutely necessary to raise inflation expectations and promote a shift in expectation formation toward a more forward - looking direction. the inflation - overshooting commitment is a means to this end. inflation expectations are, so to speak, the sense of price trends among individuals and firms, and to change such expectations is not an easy task. this is even more the case with a country like japan that has experienced protracted deflation. when qqe was introduced, the bank set a time frame of about two years to achieve the price stability target in order to emphasize its strong and clear commitment to ensuring the economy's exit from deflation. therefore, it may seem like it has taken a long time for the bank to achieve this target. on the other side of the coin, only four years have passed since the target was set. needless to say, this does not mean that taking a long time to meet the objective is acceptable. first, it remains important to have the bank's strong commitment to achieving the price stability target and express it in various different ways. then, under the highly accommodative financial conditions maintained by the bank in addition to the large - scale economic stimulus package implemented by the government, i consider it essential to enhance private demand by further accelerating efforts in both the public and private sectors to strengthen the growth potential. in fact, such efforts already have been undertaken by both the public and private sectors. in this context, the government decided the japan revitalization strategy 2016 in june 2016 and launched the 10 strategic public - private joint projects, in which the public and private sectors share knowledge and strategy, and cultivate new promising markets