To maintain its track record of achieving the inflation target, the Bank should improve the quality and efficiency of the process supporting the Monetary Policy Committee, advance its understanding of the changing nature of the inflation process and contribute to the development of inflation targeting.
The Bank’s strategic priorities endorsed by Court for 2007/08 are:
- To maintain its track record of achieving the inflation target, the Bank should improve the quality and efficiency of the process supporting the Monetary Policy Committee, advance its understanding of the changing nature of the inflation process and contribute to the development of inflation targeting.
- Money market operations should ensure stable overnight sterling interest rates and support improved banking system liquidity management, including by providing longer-term finance through, and adopting electronic bidding for, open market operations.
- Banking operations should be focused on ensuring monetary and financial stability, thus eliminating activities that do not contribute to those objectives, while also being efficient and resilient, in large part to be achieved by continuing to deliver the objectives of the Customer Banking Transition.
- The Bank should ensure that its banknotes are designed and produced in order to maintain a high level of security against counterfeiting, and that the distribution of notes, including the new £20, ensures an efficient circulation that meets the Bank’s objectives for quality.
- The Bank should draw on its upgraded analytical and market intelligence capabilities to deepen its understanding of the major risks to the UK financial system and work effectively with others to lower them.
- The Bank should be fully prepared in its management of financial crises and its business continuity planning, within the Standing Committee framework, and should work with others to strengthen international crisis management preparations.
- The Bank should promote safe and efficient payment and settlement systems and be at the forefront of best practice in operational and policy areas.
- To deliver these strategic priorities, the Bank will aim for the highest business standards and will continually improve the quality and training of its people and the integrity, controls and efficiency of its systems, processes and financial reporting.
This article has been reprinted with the authorization of the Bank of England
