Four years after moving to inflation targets, we began publishing our Monetary Policy Report (MPR), which explains in detail how we interpret developments in the economy and spells out our economic and inflation forecasts.
The new framework marks a substantial step forward in creating incentives for banks to improve the quality of their risk management. One of the most significant innovations of the new framework is that it will allow banks to make greater use of their own assessments of risk as inputs to capital calculations.