It is not optimal to pre-commit to any specific interest rate path, much less so in the current highly uncertain context. We will act with total flexibility and adopt the measures needed to fulfil our mandate and contribute to safeguarding financial stability. Along the path to a more neutral interest rate configuration, flexibility is particularly important to preventing the emergence of threats to the correct transmission of monetary policy throughout the euro area. The pandemic has shown that, under stressed conditions, flexibility in asset purchases helps to effectively counter these threats. Within our mandate, this flexibility will remain a key element of our monetary policy. In step with the communication of this process of monetary policy normalisation, market expectations of policy rate hikes have been brought forward since December. The prospect of a normalisation of the monetary policy stance has likewise been reflected in an upturn in short and long-term interest rates in the euro area. Specifically, the 10-year OIS rate, which proxies the euro area risk-free interest rate, has risen by about 133 basis points (bp) since the beginning of the year, while the 12-month EURIBOR has increased by 85 bp. Meanwhile, the risk premium on Spanish government debt increased by 34 bp in this period. European policies European policies are playing an increasingly important role in contending with common shocks to the European Union (EU) economies as a whole. This was thrown into relief when the pandemic broke out and NGEU was launched, among other measures.
This translates to at least 6,000–7,000 new jobs for the financial industry annually. We should come together to invest in adding to the talent pool here, and avoid unproductive poaching from within the industry. MAS and IBF will continue to work with the industry to see how we can extend more competency-based skills training to new entrants joining the industry. More than any other industry perhaps, the financial industry depends on talent. Identifying, nurturing, and developing talent must therefore be the number one priority of every financial industry CEO. IBF has been organising these Annual Conferences – to bring together industry leaders to deliberate on how we can do better in building talent for the industry. Today's Conference will focus on leadership development – how we can build a robust pipeline of leaders in our organisations and develop our talent base. I wish you a fruitful session ahead and I look forward to your continuous partnership in our common journey of learning and growing in the year ahead. Thank you. 2  BIS central bankers’ speeches