The mean squared gap for the inflation forecast is defined as    0 t  ,t   *  / T  1 , where t  ,t denotes the forecast in quarter t for inflation T  2  in quarter t  ,  * denotes the inflation target, and T denotes the forecast horizon (normally 12 quarters). 4  In the Monetary Policy Reports, the following note is also usually attached to the resource utilisation diagram. “These gaps should not necessarily be interpreted as the Riksbank’s overall assessment of resource utilisation.”  4  BIS Review 22/2010  Figure 1 here or Figures 2.13–2.15 in the Monetary Policy Report summarise the essence of the monetary policy decision. What monetary policy alternative shall we choose? Which repo rate path shall we choose: the one in the main scenario, or a higher or lower repo rate path? My firm opinion is that a large part of the monetary policy decision-making process and discussion should centre on monetary policy alternatives and their advantages and disadvantages. I fear that the decision process will otherwise fix too quickly and too uncritically on one particular alternative instead of carefully and meticulously considering several alternatives, choosing the best one, and very clearly describing why one particular interest rate decision was made and not another.
Ong Chong Tee: Financial integration – a collective effort towards efficient and resilient markets Speech by Mr Ong Chong Tee, Deputy Managing Director (Financial Supervision) of the Monetary Authority of Singapore, at the Launch Event for EU-Asia -Pacific Forum on Financial Regulation, Singapore, 14 October 2016. * * * Mr Olivier Guersent, Director General for Financial Stability, Financial Services and Capital Markets Union (European Commission) Dr Michael Pulch, EU Ambassador to Singapore, Mr Ashley Alder, Chair of the IOSCO Board and Chief Executive of Hong Kong SFC, Mr Ryozo Himino, APRC Chairman and Vice-Minister of International Affairs, Japan FSA, Mr Paul Andrews, IOSCO Secretary General, Distinguished guests, ladies and gentlemen, On behalf of all my colleagues at the MAS, let me extend a warm welcome to everyone at this launch event of the EU - Asia- Pacific Forum on Financial Regulation. It is a privilege and honour for the MAS to host this inaugural forum on financial regulation between the EU authorities and members of the IOSCO Asia-Pacific Regional Committee (APRC). This launch event will no doubt set the stage for the in-depth closed-door discussions to follow over the course of today. The impetus for this forum is a recognition that the financial markets of Europe and Asia are increasingly inter-connected. One measure, for example, is the total portfolio assets held by investors from the largest five EU economies1, in the Asia and Pacific region 2.