With the pandemic also affecting global supply chains for goods it’s proved that much harder1. There are still good reasons to think that this rapid inflation in tradable goods prices is likely to fade, and in some cases reverse, before a policy decision taken now could do much to offset it. In contrast, and although Many individual policy makers have discussed these points (I did so in a couple of speeches earlier this year - “Covid and the Composition of Spending” in January, and then “Mismatch” in July). As the MPC we’ve done so in successive Monetary Policy Reports this year (see, in particular, the ‘in focus’ section in the August Report). 1  3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  it’s so far contributed much less, the tightening of the domestic labour market is likely to be a more persistent source of inflation. That’s why the MPC has paid close attention to it, and in particular how it’s behaving now that the furlough scheme has ended. As I say, I’ll have a little more to say about these things – whether rapid goods inflation is likely to prove transitory, what people have actually meant by that word, and what we’ve learned about the post-furlough labour market – in a bit. Sandwiched around those points, both at the end and now, are a couple of more general points about monetary policy. These too are familiar but they’re particularly relevant in the current environment and are therefore worth reiterating.
Zeti Akhtar Aziz: Islamic finance – financial stability, economic growth and development Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Islamic Development Bank (IDB) Prize Lecture on “Islamic finance – financial stability, economic growth and development”, Jeddah, 27 November 2013. *  *  *  It is my honour to be invited to deliver this lecture on Islamic Finance: Financial Stability, Economic Growth and Development, here in Jeddah. I wish to thank the Islamic Development Bank for the invitation. The Islamic Development Bank has been pioneering and instrumental in the development of Islamic finance and has been an inspiration in driving its progress and evolution. It is indeed a privilege for me to be part of this journey, and to have witnessed the increasing dynamism of the Islamic financial industry amidst a highly challenging economic and financial international environment. Global financial and economic adjustments My remarks today will focus on the relevance of Islamic finance in modern market economies, taking into account the knowledge that we have today about the vulnerabilities of finance, its causes and its wider economic ramifications. Five years on after the global financial crisis erupted, the most pressing challenge confronting the world economy continues to be securing financial stability and generating growth and employment. While regulatory reforms both at the global and national levels have been extensive to strengthen financial systems, there has been less progress on the recovery in growth.