central bank, communicated just a few days ago. in short, this is as follows : there are clear signs of economic recovery ; however, the uncertainty with regard to the pandemic and the way it will be curbed is still great. depending on the developments, both in the country and in the euro area, we in the bulgarian national bank are ready to launch additional measures, if needed. out of the context of specific additional crisis - related measures, in the current year we also achieved development of enormous strategic importance, which will be ever more highly valued in the future. what i have in mind is the simultaneous accession of the bulgarian lev to the eu exchange rate mechanism and the country to the european banking union. this is the first step towards bulgaria ’ s full integration into the euro area, i. e. to the core of the european union, an act the importance of which goes far beyond the banking and financial sector. in a matter of days, on 1 october, the bulgarian national bank, through its banking supervision, will become the first bulgarian institution that is a full - fledged member of an important euro area institution – the single supervisory mechanism. this, inter alia, is a notable example of institutional development. only a few years ago the supervision was one of the most vulnerable and most criticized regulatory institutions in the country. now, it is one of the most sound and strong institutions, unanimously welcomed to the family of eu banking supervision. this example of institutional development may also be applied in other important areas. this will allow us to cope not only with the challenges of the present but also of the future day. please allow me to end on this note and to thank you sincerely for the privilege to be with you on this day and to wish you a successful academic year. 2 / 2 bis central bankers'speeches

##a liaison imported - 50 domestic % - 50 % unit labour costs non - farm, year - ended growth - 10 * r e s e r v e b a n k o f au s t r a l i a - 10 share of firms reporting above - average increases less share reporting decreases, no change or below - average increases ; average increase indexed to 0 ; smoothed with a 13 - month henderson trend. sources : abs ; rba. survey measures, including in the rba ’ s liaison program, suggest that firms are continuing to pass through some of this cost growth to prices, although softer consumer demand has made pass - through more difficult in some industries. the key takeaway here is that domestic capacity pressures, in both housing and market services, are contributing to above - target inflation. despite a gradual easing over the past 18 months, the labour market remains relatively tight, with labour availability still a constraint for some businesses and job vacancies elevated. we also continue to observe tightness across product markets, and firms report high capacity utilisation. restrictive monetary policy has been working to bring demand and supply more into balance and this has contributed to the easing in aggregate cpi inflation. it is true that inflation in some components of the cpi has eased more than others. but it is not unusual for different components of inflation to behave differently at any point in time. and at an aggregate level, there is further to go. with underlying inflation having fallen very little over the past year in quarterly terms, the board is vigilant to upside risks. that is why, as the board has said, policy will need to be sufficiently restrictive until we are confident that inflation is moving sustainably towards the target range. why is bringing inflation down so important? we know the restrictive monetary policy settings that are necessary to bring inflation down are causing hardship to some households and businesses. we are very conscious of that. in fact, we spend a lot of time trying to understand how interest rates settings are affecting households and businesses – and i will say more about that later. but inflation causes hardship too, for all australians and particularly for the more vulnerable in our community. our experience of how costly inflation can be is the reason that getting inflation back to the target range is our priority. there are two ways to come at this. the first, taking a longer view, is to remind ourselves why we have a flexible inflation targeting framework, which goes back to the experience with high inflation in the 1970s and 1980s.