The current global financial crisis has brought to fore serious lacunae in the approach to regulation and supervision and put the issue of systemic risk on to the regulatory agenda.
From that will follow more investment spending by companies, accompanied by more employment growth. All of this will help absorb our spare capacity, bringing inflation sustainably to our target of 2 per cent. And along the way, there will be a gradual reduction in our financial stability risks, such as household imbalances. This is a natural sequence that we will monitor carefully.