The aim is to ensure that the inflation generation is replaced by a new generation, a generation for whom economic success will depend more on their own efforts than on the accidental consequences of high and unstable inflation for the distribution of wealth – whether in housing, pensions or financial savings. Conclusions So what should we make of the Monetary Policy Committee after two years? As all parents know, second birthdays are often the prelude to a difficult period: the “terrible twos”. But I am confident that, whatever difficulties lie ahead, the Chancellor will be able to take some pride in his offspring. Philip Ziegler has described the British constitution as an accumulation of “instantly invented precedents”. Indeed, there is a tradition in the UK of making radical reforms in such a way that it is impossible, after a few years, to imagine that things were done any other way. That I predict will be true of the MPC. The whole monetary policy process is today systematic and professional in a way that was unimaginable less than ten years ago. Then, meetings between the Chancellor and Governor to discuss interest rates were often called at only a few hours notice. Now, analysis, meetings of the MPC and the publication of both the decision and the reasons for it proceed on a pre-announced timetable. The change has significantly reduced the uncertainty facing financial markets and enhanced the quality of the decisions themselves.
Much of the increase in debt issuances here was by Asian issuers—mostly from China, Indonesia and India—raising debt capital in Singapore for the first time. Green bonds are also gaining traction, with local and foreign issuers issuing over $ billion of green bonds here. The life insurance industry is doing well, with net premiums growing by 16% p.a. over 2016 and 2017. Growth was boosted by Asian consumers demanding more savings and investment products in search of yield. Non-life insurance business is, however, facing structural challenges and weak growth. Net non-life premiums grew by just 2% p.a. over 2016 and 17. 7 / 11  BIS central bankers' speeches  Business conditions have been challenging globally, due to excess capacity and downward pressure on premiums. But Singapore remains attractive as the premier reinsurance hub in Asia. Global reinsurance players such as Swiss Re and Munich Re have recently set up their regional headquarters here. And we are making a push into alternative risk solutions such as risk pools and insurancelinked securities or ILS. Foreign exchange trading declined last year although we remain the third largest FX centre globally. Singapore’s average daily FX trading volume grew by 20.5% in 2016 but declined by 6.7% in 2017. This was mainly due to lower volatility in key currencies such as the Japanese Yen; and some temporary trading desk turnover which has since been filled.