Flexible Inflation Targeting I would now like to turn to the monetary policy framework as this provides the structure within which the Reserve Bank Board makes its decisions.
This was guided by the principle of insulating basic banking activities within banking corporations from other functions (i.e. ring-fencing) so as to prevent the transfer of risk, for instance, from securities trading to basic banking. One of the recommendations of my work group was that banking groups should isolate proprietary trading within separate companies.