I would like to focus my remarks today on how inflation expectations can be useful for the conduct of monetary policy, in particular in the current conjuncture. I would like to start with the current challenges to monetary policy, arising in particular from the recent oil shock. I will then touch on how the central bank and market participants interact in shaping expectations.
We should not forget that the Basel agreements are implemented not only by the members of the committee, but by over a hundred countries worldwide. In the Arab region, for example, only Saudi Arabia is a member of the Basel Committee, but countries from the whole Arab region have adopted the Basel rules to varying degrees.