In a word, a more prudent and more stable financial system better able to sustain the economy. We need to introduce new rules to improve the quality of capital and to curb the excesses of leverage, including the imposition of a leverage ratio. There will be major corrective measures to mitigate the procyclical tendencies of the system.
The future interest rate track in any projection represents the Bank’s best view of the outlook for monetary policy settings given the information to hand at the time, and is not a commitment to the particular path shown.