The current economic developments and outlook point to new a global cycle and the need of gradual normalization of monetary policy. Gradual approach is required to avoid the so-called “taper tantrum” episodes that financial markets have already experienced during the US tapering. A stronger and clear monetary policy communication should be in favor of preparing market agents for the future monetary policy changes and smother reaction when they take place. 1/2  BIS central bankers' speeches  The monetary policy normalization in advanced economies could produce different impacts for emerging economies and their monetary policy. Any capital outflows would be highly dependent on the size and structure of the financial liabilities, especially regarding the existence of interest rate sensitive capital flows, that is not always the case in emerging economies with lower level of financial integration, where more usual are the direct investment, trade credits and banking sector capital flows. On the other hand, the more restrictive financial conditions in advanced economies in a medium run could eventually lead to lower external demand in the emerging economies. The impacts on the fiscal policy are more serious, implying stricter conditions for external budget financing, signaling the need to start or continue with fiscal consolidation, in the emerging economies where it has already started. Having in mind country specific reasons, monetary policy normalization in emerging economies may come with different lag.
Lim Hng Kiang: Opening of the Norges Bank Investment Management’s Singapore office Remarks by Mr Lim Hng Kiang, Minister for Trade and Industry and Deputy Chairman of the Monetary Authority of Singapore, in celebration of the opening of the Norges Bank Investment Management’s Singapore office, Singapore, 1 July 2010. *  *  *  Minister Sigbjørn Johnsen, Governor Svein Gjedrem, Ambassador Janne Julsrud, Ladies and Gentlemen, Good evening. 1. It is a pleasure to be here to celebrate the opening of Norges Bank Investment Management’s (“NBIM”) Singapore office. 2. The opening of NBIM’s investment office here is an affirmation of the growing importance of Asian markets in the portfolios of many long-term investors like NBIM. It also reflects Singapore’s role as a key location to manage Asian investments. Your presence here will not only bring you closer to the markets you invest in but also help form stronger ties with partners in this part of the world. 3. Among the Sovereign Wealth Funds or SWFs around the world, NBIM is widely regarded as a role model for transparency and governance. Being one of the earliest SWFs, NBIM has built up a strong reputation of excellence and leadership in investment and risk management, governance and talent management practices. NBIM has stayed focused on its objective to preserve and grow wealth for the future generations of Norwegians by diversifying its investments internationally and developing a talented investment team. Your track record has been most enviable. 4.