. we also run surveys that provide information on exposures to hedge funds. but these provide only a partial view of portfolio leverage : either because they do not provide a link between borrowing and investment activities ; or because we only see part of the portfolio due to non - banks ’ multi - jurisdictional presence ; or because the data are simply not sufficient to assess the risk of leverage. given the global nature of non - bank business models, it is essential that transparency and data availability are enhanced through international efforts, and that authorities have the right metrics to assess the risks of leverage. [ 20 ] it is encouraging to see progress being made, for example by the sec. beyond improving transparency, regulators will need to consider how best to ensure leverage is well managed. these could, for example, include broad market - wide measures such as market regulations to ensure excessive leverage is better controlled by market pricing and margins. some international work is underway. the bcbs - cpmi - iosco margin group has published its final report on margin practices. [ 22 ] the report recommends policy work in six areas [ 23 ] – including increasing the transparency and predictability of margin calls, evaluating their responsiveness to stress, and enhancing liquidity preparedness by clearing members and non - banks. as part of the ‘ next steps ’, there is already work underway evaluating the responsiveness of cleared and uncleared margin models. finally, there are important questions about the role of central bank balance sheets. in a number of recent events, central banks have had to intervene in size, using public money, to remove the threats to financial stability. providing backstop liquidity insurance when tail risks to financial stability crystallise is a core part of central banks ’ job. and the fpc has discussed the importance of examining whether central banks should have facilities to provide liquidity to a wider set of financial market participants in stress. but central banks cannot be a substitute for the primary obligation of market participants to manage their own risk, or for internationally co - ordinated reforms that enhance the resilience of the non - bank financial sector. for that reason, such facilities must be carefully targeted on the financial stability vulnerability at hand, and designed in ways that incentivise the right private sector behaviours, incuding reducing incentives for excessive risk taking in the future. [ 24 ] my colleagues in our markets area have been considering these issues, [ 25 ] including with colleagues internationally [ 26 ] – and a number of these principles

policy maintaining economic balance is key to the making of monetary policy, as it is one of the most important pre - requisites of macroeconomic stability. in practice, this means that as the economic activity returns to normalcy, monetary policy stance must similarly be normalized. failure to do so will add undue pressure on inflation, ultimately posing risks to macroeconomic stability. thus this year, the monetary policy committee ( mpc ) will need to continue normalizing monetary policy. the amount and pacing of policy interest rate adjustments this year will be consistent with the outlook for growth and inflation as well as the surrounding risks. as always, the policy decisions will be grounded on informed and prudent deliberation by the mpc, with an aim of keeping core inflation within the target band as mandated by law. because many shocks, both of temporary and structural nature, cannot be foreseen, it is difficult to say beforehand what level of policy interest rate should be appropriate for this year. however, sustained negative real interest rates are usually not consistent with fostering economic balance. bis central bankers ’ speeches timely adjustments in policy interest rate will help keep inflation pressure in check, which in turn lead to low and sustainable borrowing costs in the long run. the bank of thailand has taken steps to enhance the transparency of monetary policy making, by announcing the mpc voting result together with the statement for the first time early this month. the first minutes of the meeting has also been released this morning. it is hoped that these information will help businesses and households understand the rationales behind the mpc policy decisions, and enable them to make better and more informed economic decisions. exchange rate policy the bank of thailand adheres to our policy framework, where exchange rate is not a policy instrument and hence is market - determined. however, recognizing the risks of high volatility in capital movements looking ahead, the bank of thailand has followed a three - part approach. the first is to develop a systematic capital flows master plan, with sequencing appropriate for the development of the thai economy and the evolving international financial market. part of this plan is to relax regulations that hinder thai residents from investing abroad, in order to foster more balanced capital flows. secondly, the bank of thailand will encourage the use of appropriate financial hedging instruments, in order to strengthen the risk management capability of the private sector, especially the small and medium - sized businesses. given the possibility of more volatility in the financial market looking ahead including the