The more certain assessments are about future interest rate developments, the lower risk premiums that investors will require to purchase short-term, interest-bearing treasury paper, for instance, or the banks to lend money to businesses and households. Great uncertainty leads to macroeconomic costs such as lower investments and higher costs for central government debt. There is therefore a wish not only on the part of the participants in the financial market but also from the Riksbank to be as clear as possible about the factors underlying monetary policy decisions. However, absolutely most important is to make the inflation target credible since that controls the long-term interest rates. However, it is important to be as clear as possible about the conduct of monetary policy in the short term to avoid unnecessary uncertainty. But this does not mean that we can remove the uncertainty that actually exists about future developments. We continuously evaluate our previous assessments when new information and statistics are received. And we continuously develop our methods and models and may, when we have received new information, be obliged to re-evaluate earlier conclusions. This was the case, for instance, in the spring when we revised our assessments about the output gap. The conclusion of that is that the interest rate path cannot be announced in advance and even less that we can undertake to supply the interest rate decisions that the market participants sometimes consider that we have given indications of.
Jacqueline Loh: Shanghai and Singapore - synergies amidst a dynamic Asian financial landscape Keynote address by Ms Jacqueline Loh, Deputy Managing Director of the Monetary Authority of Singapore, at the Second Shanghai-Singapore Financial Forum, Shanghai, 30 November 2016. * * * Ladies and Gentlemen Introduction 1 Good afternoon, it is my pleasure to join you at the 2nd Shanghai-Singapore Financial Forum (SSFF). 2 In November last year, the Monetary Authority of Singapore (MAS) and the Shanghai Municipal Financial Services Office (Shanghai FSO) launched the inaugural SSFF. That was a significant and important milestone. As the Chinese saying goes, 二人同心，其利断金. The SSFF is more than just a forum. It is a reflection and commemoration of the longstanding relationship and cooperation between Shanghai and Singapore. Following last year’s success, both sides are keen to build on the good momentum achieved and bring our relationship to a higher plane. 3 The aspirations of both the MAS and Shanghai FSO are reflected in the theme for this year: “Shanghai and Singapore – A Partnership for a New Asian Financial Landscape” . Our hope is that both cities can work together to forge a stronger, more future-ready partnership ahead. This is important for both Shanghai and Singapore, which are international financial centres in the midst of a rapidly evolving Asian financial landscape. 4 Let me outline briefly what we have achieved together so far and highlight the synergies that we see ahead for both Shanghai and Singapore. I.