Monetary developments therefore continue to require very careful monitoring, both to detect underlying trends associated with inflationary pressures at longer horizons and to better understand shorter-term dynamics. Such monitoring will also provide a more complete picture of the response of the private sector to the increased volatility in financial markets.
At the same time, firms will find that we are insistent that governance and control arrangements should be commensurate with the size, scale and complexity of operations. Our approach in assessing the plans of existing firms and new authorisations is straightforward.