That regional network has grown out of the Bank’s branches that were established in 1826 to deal with problems caused by the failure of local banknote-issuing banks. (The nearest branch to North Wales would have been in Liverpool, and like several of the sixteen branches which the Bank opened at that time it was located on land previously occupied by licensed premises - the old Queen’s Arms in Castle Street. Indeed the guiding principle seems to have been “If it works as a pub it will work as a bank”. The Licensed Victuallers Association has taken its revenge in recent decades, as old banks have been turned into pubs). Within the branches, the Bank appointed an Agent to liaise with local industry and commerce, and since 1930 they have been sending regular reports on their economies to Threadneedle Street. During the 1980s and 1990s, most of the branches were closed as different schemes for guaranteeing the supply of bank notes were established. But the Agents remained, and the network was extended to its current line-up of twelve - including a new Welsh Agency located in Cardiff, now run by Adrian Piper. Between them, the Agents are in regular contact with some 8000 firms. This provides the basis for the Agents’ monthly reports and presentations to the MPC; the Committee also commissions special surveys and asks for Agents’ help in understanding puzzles in the data. This information is currently published in summary form each quarter, alongside the Inflation Report.
Twenty-five years from now, I am confident that one of my successors will be able to look back and explain in his or her Mais Lecture the great improvements that took place between 2005 and 2030. But I like to think that the inflation target framework has the ability to serve us well over that period. Thirty years ago the theory of monetary policy was ahead of its practice, at least in the United Kingdom. Now I hope that the practice has given the theorists something to think about. Table 1: Inflation targeting countries Country New Zealand Chile Canada Israel U.K. Sweden Finland Australia Spain Czech Republic Korea Poland Mexico Brazil Colombia South Africa Thailand Iceland Norway Hungary Peru Philippines  Adoption of Inflation Targeting Dec. 1989 Jan. 1991 Feb. 1991 Jan. 1992 Oct. 1992 Jan. 1993 Feb. 1993 Mar. 1993 Jan. 1995 Apr. 1998 Apr. 1998 Oct. 1998 Jan. 1999 Jun. 1999 Sep. 1999 Feb. 2000 May 2000 Mar. 2001 Mar. 2001 July 2001 Jan. 2002 Jan. 2002  Source: Truman, Edwin (2003), Inflation Targeting in the World Economy, Institute for International Economics, Washington DC. The table not only includes current inflation targeting countries, but also Spain and Finland, which have since joined EMU.