At our last meeting, we raised the policy rate by 75 basis points, which is a large move by historical standards. That size increase was not an over-reaction to one data point on inflation—it was primarily the response to a sequence of excessively high inflation readings since the beginning of the year.
But the agencies are also paying significant attention to broader corporate governance issues, including internal controls and internal audit. Corporate governance is more than effective risk management. Corporate governance is the framework by which the different constituencies within an institution--owners, management, and staff-interact with each other to make sure that any actions taken are in the best interests of the corporation and its shareholders.