We saw excessive risk-taking, insufficient loss-absorbing capacity and banks that were “too big to fail” – to name just a few of the problems that led us into the crisis. Over the seven years since the collapse of Lehman Brothers, significant progress has been made on the regulatory agenda.
The Government and the Bank further note that: Given that there is uncertainty about the maximum level of employment that is consistent with price stability, the Bank will continue to use the flexibility of the 1 to 3 percent control range to actively seek the maximum sustainable level of employment when conditions warrant.