Given the size and duration of the price increases from energy, food and other price shocks, this is not surprising. It has also been reflected, again not surprisingly, in the pickup in the various measures of short-term inflation expectations which the MPC monitors closely. What would be more of a concern is if increased short term persistence of actual inflation was reflected in an increase in medium-term inflation expectations, as this would suggest that inflation expectations might be becoming de-anchored from the 2% inflation target. Having increased during much of 2022 for households and businesses, medium to longer-term measures of inflation expectations have shown signs of easing back more recently. The October Decision Maker Panel survey of businesses showed that three-year ahead CPI inflation expectations fell from a peak of 4.8% to 4.0%. Households’ inflation expectations as measured by the YouGov/Citigroup survey eased from August highs. The most reliable market-based measure of longer term inflation expectations was on a sustained upwards trend through 2021 and into 2022, peaking at 4.7% in March8. It has been volatile around a declining trend since, albeit one distorted by the LDI episode. But  8  This is currently the 5yr2yr swap as it does not extend beyond 2030 where the index is being referenced by the UK inflation linked instruments shift from RPI to CPIH as a result of the RPI reform.
Zeti Akhtar Aziz: Reflections on financial reform – Malaysia’s experience Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the 2013 China Business News (CBN) Annual Meeting and Finance Summit “Reflections on financial reform – Malaysia’s experience”, Beijing, 8 December 2013. *  *  *  It is my honour and pleasure to be invited to speak at this 2013 China Business News Finance Summit. As the globalisation of finance intensifies, the world is becoming increasingly more inter-connected and integrated. This has largely been due to the trend towards increased financial liberalisation by most parts of the world. It has been maintained that such deregulation and liberalisation would facilitate the development of more efficient and robust financial systems and that it would result in a more efficient allocation of financial resources across borders. While such financial liberalisation may indeed bring such wide ranging benefits, it also brings with it increased risks that needs to be effectively managed. It was for these reasons that Malaysia adopted a conscious effort to put in place the financial and economic pre-conditions so as to enable us to benefit from such financial reforms involving the deregulation and liberalisation of our financial system. Allow me to share our experience in pursuing this agenda. Following the Asian Financial Crisis, Malaysia embarked on strategies for an orderly development of the financial sector.