mark carney : summary of the latest monetary policy report update opening statement by mr mark carney, governor of the bank of canada, at a press conference following the release of the monetary policy report update, ottawa, 22 january 2009. * * * good morning. we are pleased to be here with you today to discuss the january monetary policy report update, which we published this morning. the outlook for the global economy has deteriorated since the october monetary policy report, with the intensifying financial crisis spilling over into real economic activity. heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand. major advanced economies, including canada's, are now in recession, and emerging - market economies are increasingly affected. commodity prices – especially energy prices – have fallen as a result of substantially weaker global demand. stabilization of the global financial system is a precondition for economic recovery. to that end, governments and central banks are taking bold and concerted policy actions. there are signs that these extraordinary measures are starting to gain traction, although it will take some time for financial conditions to normalize. in addition, considerable monetary and fiscal policy stimulus is being provided worldwide. canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and confidence. canada's economy is projected to contract through mid - 2009, with real gdp dropping by 1. 2 per cent this year on an annual average basis. as policy actions begin to take hold in canada and globally, and with support from the past depreciation of the canadian dollar, real gdp is expected to rebound, growing by 3. 8 per cent in 2010. a wider output gap through 2009 and modest decreases in housing prices should cause core cpi inflation to ease, bottoming at 1. 1 per cent in the fourth quarter. total cpi inflation is expected to dip below zero for two quarters in 2009, reflecting year - on - year drops in energy prices. with inflation expectations well - anchored, total and core inflation should return to the 2 per cent target in the first half of 2011 as the economy returns to potential. global developments pose significant upside and downside risks to the inflation projection. on the upside, the global economy could be stronger, if global fiscal stimulus turns out to be more expansionary than expected, or if aggressive policy actions taken across major economies restore confidence more quickly than projected. on the downside, the global recession could be deeper and more protracted because

. in kader mia ’ s case, the price he had to pay for his economic “ unfreedom ” was death. this is why we are here – to do our part to help many, like kader mia, who remain shackled by their circumstances, achieve economic freedom. this forum seeks to address not just the question of facilitating transfers more efficiently, but how to make such transfers go further and do more to meet today ’ s most pressing global challenges – from access to healthcare and education, equal economic opportunity for all, to protection of the environment. without addressing these challenges, economic freedom would remain an elusive dream for 1 / 5 bis central bankers'speeches many. this forum will cover a broad range of issues – not all of which will have clear solutions. but we will most certainly learn more, understand better and hopefully, be able to determine what our next steps must be. with that in view, let me take this opportunity to offer some brief reflections on what those steps might be. reinvigorating financial services to drive the sdgs first, we need to do more to reinvigorate financial services to drive the united nations sustainable development goals ( sdgs ). many countries in this region, including malaysia, have made important progress in the adoption of the sdgs under the national development agenda. certainly, malaysia has had a long - standing commitment to the pursuit of sustainable and inclusive growth. malaysia ’ s national economic development policies adopted since more than four decades ago reflect many of the sdgs. like many central banks in this region, financial inclusion is an important priority of bank negara malaysia – one that is in fact legislated as a mandate of the central bank, which is actually not all that common in many countries. because it is a statutory mandate of the central bank in malaysia, it has enabled bank negara to lead and drive the financial inclusion agenda with the support of our key domestic partners and stakeholders. with growing global concerns over rising inequality and the disproportionate impact of crises on the poor, there has been considerable focus by governments and policymakers to ensure that no segment of society is left behind in participating and benefitting from the nation ’ s development. but what of the role of the financial services industry? it is worth noting that 14 out of the 17 sdgs include specific targets that focus at some level on the financial sector. to mention a few : on poverty : the sdgs include a specific target to build resilience