, mainly owing to energy and commodity prices. this has not so far affected our assessment that price developments will remain in line with price stability over the policy - relevant horizon. at the same time, very close monitoring is warranted. recent economic data confirm the positive underlying momentum of economic activity in the euro area, while uncertainty remains elevated. a cross - check of the outcome of our economic analysis with that of the monetary analysis indicates that bis central bankers ’ speeches inflationary pressures over the medium to long term should remain contained. inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. the continued firm anchoring of inflation expectations is of the essence. turning to fiscal policies, it is now essential that all governments fully implement their fiscal consolidation plans in 2011. where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability. beyond 2011, countries need to specify concrete policy measures in their multi - year adjustment programmes so as to underpin the credibility of their fiscal consolidation targets. experience shows that expenditure restraint is an important step towards achieving and maintaining fiscal soundness, notably when enshrined in binding domestic policy rules. such a commitment helps to strengthen confidence in the sustainability of public finances, reduces interest rate risk premia and improves the conditions for sound and sustainable growth. the implementation of credible policies is crucial in view of ongoing financial market pressures. substantial and far - reaching structural reforms, complementing fiscal adjustment, should be urgently implemented to improve the prospects for higher sustainable growth and employment. major reforms are particularly necessary in those countries that have experienced a loss of competitiveness in the past or that are suffering from high fiscal and external deficits. increased product market competition and labour market flexibility would further support the necessary adjustment processes in the economy. all these structural reforms should be supported by the necessary improvements in the structure of the banking sector. sound balance sheets, effective risk management and transparent, robust business models remain key to strengthening banks ’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth and financial stability. we are now at your disposal for questions. bis central bankers ’ speeches

vision for the oversight of the payments system – one that helps to ensure its safety and soundness, its efficiency and its security. and third, a coordinated approach for achieving this dual vision – one that calls on the payments industry and regulatory agencies to work together to attain this collective goal. bis central bankers ’ speeches a vision for the payments system in considering a vision for the payments system, let ’ s take a holistic perspective. 1 the oftenused distinction between retail payment systems, which involve many end - users and smaller transactions, and wholesale or interbank payment systems, may not be appropriate when considering a vision for the future. instead, a more comprehensive view reflects a future in which technological change will allow retail and wholesale systems to offer similar services and thereby compete more directly for a share of the same payments pie. my vision for the payments system draws from work that has already been done in canada and in other jurisdictions to map out a desirable path for the future evolution of payments. we are not alone in wanting to move toward an innovative, safe and secure payments system that evolves to meet the needs of consumers and businesses. this vision maintains the best characteristics of our legacy system, while allowing for the advantages that innovations promise. such a payments system has six essential attributes : 2 ( i ) high speed – end - to - end processing in near real time ; ( ii ) low cost – efficient and convenient ; ( iii ) open access and ubiquitous usage ; ( iv ) improved cross - border functionality ; ( v ) safe, sound and reliable ; and ( vi ) secure – to protect the private information of users. i will consider the first four attributes now and leave the last two for the discussion of the vision for oversight. 3 comparing canada ’ s existing payments system to this vision, it is clear there are many gaps. 4 in particular, in this era of instant communication, canadians expect to be able to send and receive payments faster, at any time, and at low cost, without having to know the recipients ’ banking information. some progress has been made, however. the wider use of digital payments technology has increased speed, lowered costs and broadened access to the payments market. for example, between 2008 and 2011, the number of credit and debit card payments rose by 23 per cent and 17 per cent respectively. 5 an example of an all - encompassing definition of a payments system is : a set of “ arrangements that allow consumers, businesses and other organizations to transfer value from one party to