Aside from cyclical factors, where there are elements beyond our control, attaining higher stages of development in a broad sense, depends upon us. Among the many challenges noted by numerous studies are to reduce energy costs, improve infrastructure and provide quality education. Our objective is not only to boost growth; it must also guarantee that the benefits are felt by every individual. We, as the Central Bank, have reiterated our commitment with price stability, stating that we will take every step necessary for the inflation forecast over the policy horizon to be aligned with the 3 percent target. As we have said time and again, that is the main contribution that monetary policy can make to the country’s development and welfare. Without a good macroeconomic framework, development in other areas becomes elusive. Of course, in macroeconomic stability, the Central Bank plays an essential role. Thank you very much. 8  BIS central bankers’ speeches  Figure 1 Business and consumer perception (*) (index, pivot=50) 70  70  60  60  50  50  40  40  30  30 04  05  06  07  08  09  10  IMCE  11  12  13  14  IPEC  (*) Value above (below) 50 points indicates optimism (pessimism). Sources: Adimark and Icare/Universidad Adolfo Ibáñez.
Comparability is key, because it allows policymakers to assess how different proportionate regulation approaches affect intended outcomes in different jurisdictions. The goal here is to identify and disseminate tested and proven proportionate regulation best practices, well supported by empirical evidence. The evidence on proportionality in practice facilitates regulators and financial institutions in implementing innovative solutions because they have the confidence that there would be no adverse unintended consequences to financial stability and integrity. Empirical data can also support Standard-Setting Bodies in designing differentiated guidance for financial services for low-income households and SMEs. While the importance of data collection is obvious, there tends to be under investment and an ‘attention deficit’ among decision makers on such a critical matter. Second, it is crucial to build the capacity of regulators, supervisors and financial institutions so that the ecosystem has the requisite capacity to implement proportionality in practice. The Basel Range of Practice Survey highlights supervisors’ unmet demand for capacity building, as only 30% of supervisors globally had received training on supervision of banking services for the low income segment. The Basel Meeting with Standard-Setting Bodies on 2 October 2014 chaired by Her Majesty Queen Maxima, the United Nations Secretary General’s Special Advocate, also highlighted the importance of technical assistance programmes to build up local knowledge and capacity of national supervisors, so that experience in applying proportionality can be shared.