8  BIS Review 129/2008  implemented in a number of countries. However, modified accounting rules should not induce banks to postpone losses. I would now like to talk about a number of fundamental institutional questions relating to the stabilisation of the financial system and the allocation of competencies among the various sovereign regulatory levels.
On Tuesday, the Bank raised its key policy interest rate by one-quarter of one percentage point to 4 1/2 per cent, and we said that some modest further increase in the overnight rate may be required to bring inflation back to the target over the medium term. Paul and I would now be happy to take your questions. BIS Review 81/2007  1