Under these conditions, a revision in inflation targets has become a technical necessity. Therefore, the Central Bank of Turkey proposed the government to revise the targets for 2009 and 2010 to 7.5 and 6.5 percent, respectively; and to set the target for 2011 at 5.5 percent, and the government accepted our proposal. I would like to re-emphasize that, we will not treat the revised targets symmetrically. Monetary policy will aim to keep inflation below the revised target path. Dear Guests, We stick to our price stability objective. At the same time, we are aware of challenges we have to face. First of all, the rapid rise in food prices may be more permanent than expected due to rapid economic growth, slowdown in agricultural productivity and employment shift from agriculture to industries. Considering the fact that food has a higher share in the consumption basket of developing economies, including Turkey, this would lead to a decoupling in inflation rates between industrialized world and developing countries for years to come. 2  BIS Review 79/2008  Similarly, commodity prices may remain elevated for the foreseeable future, which may prove to be a challenge for Turkey in particular. Note that Turkey is a net commodity importer in contrast to many other developing countries. Last, but not least, price stability necessitates stability in financial markets. We need to put our house in order to attract foreign capital with long-term horizon, rather than highly mobile short-term capital.
The two cities are situated in different regions and their real economies have different clientele. With capital account controls still in place on the Mainland, the further opening up of Shanghai, such as the development of its Free Trade Zone, will lead to closer and more extensive business, trade and financial links between the two cities, meaning more business opportunities. In 2000, there were 23 flights a day between Hong Kong and Shanghai. In 2013, this had increased to 75, clearly demonstrating that the continuous growth of Shanghai will result in more business exchanges with Hong Kong and creating a win-win situation. 9. Indeed, the launch of the Shanghai-Hong Kong Stock Connect on November 17 resonates with my assertions here in several ways. Last week, Vice-Premier Ma Kai told the visiting delegation of the Hong Kong Association of Banks that the scheme was not only a 2  BIS central bankers’ speeches  milestone for financial co-operation between Hong Kong and Shanghai, but also a strategic move towards the Mainland’s capital account convertibility and the opening up of its capital market. Furthermore, the Shanghai-Hong Kong Stock Connect adds another important channel for the circulation of renminbi between onshore and offshore markets. It is also a strong vote of confidence in Hong Kong’s development as an international financial centre, reaffirming our unique role as the offshore testing ground for the Mainland’s financial liberalisation. Zero-sum vs positive-sum 10.