At the very least, firms and households are likely to delay major expenditure decisions until things become clearer. And this may act as a drag on the recovery in activity. The rise in the cost of security and insurance will also probably have a more long-lasting effect on activity. Discussion of the attacks has somewhat obscured the fact that the world economy seemed to be slowing more rapidly than expected even before 11 September. Overall activity in the US had been weak, despite continued strength in some sectors, notably retail. And the euro area grew by just 0.1% in the second quarter, as net trade slowed sharply. The monetary policy reaction has of course been rapid. In the United States, in particular, interest rates have already been reduced by four percentage points since the start of the year. And fiscal policy has been expanded. These actions should clearly stimulate demand. But, as is always the case, the size and timing of these effects is extremely hard to judge. 2  BIS Review 87/2001  So far this year, the UK economy has fared rather better than its main trading partners. GDP growth has slowed from the peaks it reached during 2000. But the economy still grew by 0.6% in the first quarter of this year, and 0.4% in the second. Much of that strength, of course, reflects domestic demand growth, and particularly household consumption, which rose a further 1.3% in Q2. In many ways, this should not be a surprise.
Published Date: 08 June 2022  "Towards Net Zero in Asia" - Opening Remarks by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at the Launch of GFANZ’s Asia Pacific Network Central Oﬀice on 8 June 2022 Friends and colleagues Ladies and gentlemen, good morning. There are four key enablers for the journey to net zero: carbon pricing in some form; emissions standards, across various activities; technological advances, in renewables as well as energy efficiency; green finance This fourth enabler is where the financial sector can play a critical role – both the financial industry and those who regulate it – in getting us to net zero. The starting point for climate action in the financial sector is through the gateway of risk management. Before the financial sector can do good, it must first ensure that it comes to no harm. Hence the importance of ensuring that the financial system is climate resilient – that it can identify and manage the risks associated with both climate change and mitigating actions. Seven years ago, Mark Carney – when he was chairman of the Financial Stability Board, and I had the great pleasure of working with him – socialised the importance of managing climate-related financial risks. The work that Mark initiated through the Task Force on Climate Related Financial Disclosures (“TCFD”) has led to a broad consensus today on the relevance of climate-related risks to financial decisions.